What is the tax due (percentage to be sent to IRS) on a cash prize winning from a sweepstakes? - cash sweepstakes
I need to know what percentage of tax payable by a cash prize winners of a competition. I checked the website of the IRS and the taxes on the cash prize of $ 5,000 or more is due. Is that true? The tax is not levied on any income of under $ 5000?
Sunday, January 24, 2010
Cash Sweepstakes What Is The Tax Due (percentage To Be Sent To IRS) On A Cash Prize Winning From A Sweepstakes?
Subscribe to:
Post Comments (Atom)
6 comments:
The federal government scholarship as a tax on the ordinary income. You do not pay social security or Medicare taxes, but if you file your 1040, the total gains of 21 online, add the gross income added. You will find on it, as if he will be taxed much more than the income in box 1 of Form W-2. The same applies if you win any cash prize. You have to take the market price, and line in the 21st The tax laws of the state vary, so that with the tax code state at the local level to review additional information. Most states that tax revenues are not tax lottery winnings to the state.
If the company does not pay at the lottery to the federal tax deduction for you, you could have a big surprise when you send your return in April. You can not occur no more taxes but also penalties and interest. You may have to make estimated tax payments for the IRS to avoid these penalties. If the amount or the results are relatively low, or if you taxes for you, I would not worry about an estimated payment.
"Lotteries and raffles. Winnings from lotteries, gambling and gambling are. In addition to cash winnings, you will need in the income the fair market value of bonds, cars, homes and cash bonuses for the other."
It says nothing about the price too low. The donor of a prize may not be reported to the IRS, are not required to withhold taxes if the price is below a certain amount. However, this does not mean that the recipient does not tell you in your tax return. Just because people do not report small profits (scratches, bingo, etc.) does not mean that it is legal to do so.
Another thing to compensate for loss of earnings can play with the game. The payoff is line 21 of 1040 and losses are summarized in TableA. The losses in Annexes A can not exceed the income reported on line 21 .... To store the review of all gambling losses to help offset the game (lottery) winnings.
Hope this helps:)
It is as ordinary income, taxed as wages.
I know someone who won $ 100,000.00 after taxes and has returned $ 66,000.00. So a little more than 1 / 3 of the taxes.
talk to your accountant for the exact amount, but the general rule for sums, for example, one million U.S. dollars or more is about 40%.
There is no golden rule "is not a tax on everything. you are the site of the IRS and does not try, or not less than $ 5000 is taxed?
The total amount of taxable as ordinary income. The actual amount depends on your level of taxation. $ 5000.00 The rule applies to withholding tax on certain gains, but not to the actual taxes paid.
Most taxpayers are 15% and 28% level of taxation. If significantly in the future, but it could be even more.
Post a Comment