The winner of an Xbox Game Pass Ultimate Lifetime Membership now claimed his prize.
Those who participate in the Microsoft Rewards program can use the points they earn in a number of ways. Among other things, for competitions for hardware organized by Microsoft, such as Xbox consoles or vouchers for shopping in the Microsoft Store.
Microsoft has also given away a lifetime membership for Xbox Game Pass Ultimate several times. A winner now declined with thanks, as he reports himself.
On the Microsoft Rewards subreddit, user Elvite shared his incredible win, which he declined after receiving paperwork about it.
Through the documents, he realized that the winner, who lives in the US, would have an additional income of $7,300 in taxable income for 2023 if he had accepted the prize. The sum corresponds to 40 years of Xbox Game Pass Ultimate, because the “lifetime” profit is only limited to these 40 years.
According to the profit, under US tax law, his tax bill for 2023 would have increased by $1752 (24% of the price).
Despite giving up his prize, he’s not mad. If the profit had been limited to ten years, the taxes would have been more worth it to him. Or if the taxes involved had been a PC that he could have used immediately, as he writes.