Hosting a giveaway on your blog is a popular way to gain followers and build relationships with sponsors. However, there are tax consequences. There are always tax consequences!
Your requirements as the host varies depending on the value of the prize. If the giveaway prize is valued at $600 or more – or if one person wins multiple giveaways and the total prizes awarded in the year exceed $600 – you are required to send the winner a Form 1099-MISC.
Check with your sponsor, as they may take care of this for you. If not, the ball’s in your court.