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Steps for paying taxes on prize wins

One may have confused about paying taxes on prize wins, but yes, it is true that you need to pay for your net income, whether it is from the prize. Winning a reward from a lottery, quiz show or some other event can be a withdrawing experience, but it is significant not to expend the full quantity of your prizes. The Internal Revenue Service (IRS) taxes awards won just like any other basis of revenue.

According to the IRS (www.irs.gov), prize money earned must be stated in standard 1040 tax form as “other income.” The overall amount of tax you will have to reimburse on prize earnings is founded on your bordering central tax amount plus any appropriate state taxes. You can compute an approximation for paying taxes on prize wins from your tax return from last year.

You have win - You have to pay your taxes

Paying Taxes on Wins

Your adjusted gross income (AGI) registered on your 1040 tax form from last year should be noted down. This amount will be registered. If you need a precise computation of the tax owed based on your revenue from this year, you need to fill up a new 1040 form with your income evidence from this year to estimate your AGI for this year.

Browse on “Bank rate: 2013 tax bracket rates” site and inquire your bordering tax rate founded on your AGI. The minimal tax rate is the rate you recompense on the final dollar you make. For example, if you make $1, 00,000 a year as a single filer, your minimal tax rate is 25 percent because $1, 00,000 falls in the $89,351 to $186,350 recorded on the chart.

Multiply the prize quantity by your minimal tax rate. This is the quantity of federal tax you will owe on the prize. If the prize is big, some of the prizes might be taxed at an increased rate. This applied to recurring payments on cash sweepstakes or other. For instance, if your earning is $50,000 a year and you are awarded a $50,000 prize, the prize money will be taxed at 25 percent till $89,351, but the remaining of the prize will lie in an increased mount of tax support, in this case at 28 percent.

Sum your state’s applicable taxes to the amount from considering the entire amount of taxes payable on the prize. State income tax rates differ. The department of income website for your state should list tax rate info. If the state tax rate is 10 percent, reproduce the money prize amount by 10 percent the result is to be added to the calculated minimal tax.

If someone has confusion about paying taxes on prize wins, he should consult with tax expertise who can suggest him properly for this issue.

Get more info at: http://www.irs.gov/

Steps for paying taxes on prize wins
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Juliette is a professional sweeper with a great expertise. She started this sweepstakes blog in 2007 to share tips and advices Google+

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186 Responses to “Steps for paying taxes on prize wins”

  1. Steven Eisen says:

    Thanks for the chance to win $3 million for a new home!

  2. Christina shepherd says:

    Best of luck

  3. Jerry Albert Puente says:

    Yes I’ve been praying for GOD to please let me have that BLESSING not just for me but for the kids I just adopted so can help them with what ever they need in life because for what I make In a week is not enough my wife is not working write know and I don’t want to lose our house if I get sick I don’t know what we are going to do so that’s why I pray to GOD ALOT to please let me WIN.

  4. Stephanie Carlisle says:

    Hi PCH.. I want to win 7,000.00 a week for life and Tax free! thank you!

  5. Christina shepherd says:

    Yes I Accept my owners paper for pch 7000 a week for a lifetime papers #IAMINITTOWINIT#PLEASE I NEED A MIRACLE AND HAVE A STORY TO TELL!

  6. Elsa Sandoval says:

    I’m ready to meet PCH prize patrol!

  7. Elsa Sandoval says:

    Good Friday is my day to celebrate, I love Jesus!

  8. Elsa Sandoval says:

    Yeah, ready to celebrate!

  9. Elsa Sandoval says:

    Yeah, so ready to meet PCH prize patrol, my dream is to meet you in person, so just bring me the champagne, flowers, balloons, and your big smile!

  10. Lic. Pierre Millet says:

    My wife and I came to United States of America as political refugee from Cuba. When we received our visa in order to travel and life in this great country. The Cuban government there confiscated our beautiful house and all its items, our rights too. We are very happy in this country, and we are proudly U.S. citizens. We are playing dairy with Publishing Clearing House (PCH), because the American dream can be a reality in this contest. It’s a reality today.
    Thanks.

  11. Yolanda smith says:

    After my family being torn apart..an my two youngest being adopted out…I lost everything..my children.house .husband and cars..everything I worked so hard for..an left depressed an homeless..for ten long years..I finally this last week reunited with my daughter.an have spoken to my son..I would love to Winn the home ..so that my children can never be thrown out ever again..the way the adoptive parents did..I wanna Winn so I can make sure my children always have a home…a loving home..the way they did before they were wrongfully ripped away from a family who lied them..an still do..an so now my daughter and son can go to collage an my three older boys won’t have to continue to struggle to keep a roof over their family’s heads..so Yes I really really wanna Winn !! Thank you..
    Yolanda.

  12. Stephanie Carlisle says:

    I would love to win PCH $ 7,000.00 a week for life! I wouldn’t give up and kept trying and has been going on for a very long time! This is my dream comes true to let it happen! I would love to help my family and few friends of mine! They did help me a lot! I want to do something back for them and plus i want to buy my own house and a car! Thank you!!!! ( praying hard)

  13. veronica godinez says:

    Not to worry. I have an accountant who will take care of everything. Had him for 25 years. I will take care of that right away. Thank you veronica godinez

  14. CAYDEE MAWHORR says:

    I’m ready to win

  15. sarah b hogge says:

    I ONLY GET SS TO LIVE ON AND I REALLY WOULD LIKE TO WIN AND I WOULD HELP MY KIDS AND GRANDCHILDERN

  16. JoAnn Benito says:

    Make me a winner pch

  17. William Roberts Jr. says:

    PCH, AT THIS AGE OF 59, I’m ready to finally live, never owned my own home, been married for 4 years, been living from paycheck to paycheck, and can’t seem to get a running start, have a wonderful wife, children are almost gone, have a young daughter who is 15 years old, and will be 16, in march, I live in a very small apartment, in Lexington, struggling with the payments on my Toyota Tundra truck, and I need a break, if you are who you say you are Pch, Please make my dreams come true, I would Love to win this $3 Million.Dollar’s for my dream home, and I promise you that I won’t be selfish, I will keep my promise, I will Donate to the children of St jude, and immediately Purchase our brand new dream home, and get in touch with I.R.S, and pay Taxes to Raleigh North Carolina, and Pch whatever you need me to do, but, Please make my dreams come true. Thank you and you’re going to be very proud of me Thanks..

  18. Frankie Cresswell says:

    WOULD LOVE TO WIN PCH HOME AND TAX FREE PRIZE THANK YOU PCH TEAM FOR THIS CHANCE TO WIN #4900 WIN ”FOREVER”

  19. connie Kendall says:

    I would love to win the pch February 26th my name is connie Kendall so I hope I win some thing I been play for 30 year and ant won notin so tell me please what it take to win I been call the last 1 and half to enter my name and still ant won so tell me please what do I got to do to win

  20. NS says:

    PCH, I would love to win the millionaire prize and I want to thank those hard working PCH employees who changed so many lives already Those who already won I wish them all the luck in the world and I am so glad that your life changing sweepstakes exist. The PCH Prize Patrol is an incredible opportunity to have and are changing so many people’s lives. Many thanks from my military family for all the lives you have changed.

  21. Chris says:

    Please let this be my Dream come true!!?

  22. Janice Chase says:

    I would love to win thank the superprize . I was lock out of my a accounts in Google and Facebook. Because of a hacker it took me two months too get back in had to prove who I was . But I missed the big chance with Pch . Superprize but I’m back now . Thank you for another chance love you guys never giving up yours very truly ******gmail.com

  23. Jedediah Addis says:

    CONTROLLER’S STATEMENT:
    Publishers Clearing House guarantees to award $5,OOO.OO A Week “Forever” on February 26th.
    I would like to Claim eligibility to win

  24. Mario Echeverria says:

    Dear friends: thanks to recording me some thing to much impportant ” payment taxes” . But , now it’s to much impportant to activate the deposit funds for paynent realize in my superprize claim PCHGWY No. 4900 , thanks for this help and support. ME

  25. William Roberts Jr. says:

    Pch it would be nice to wake-up A Pch Millionaire Prize winner, but, I know that I was just dreaming,

  26. William Roberts Jr. says:

    Pch it would be nice to wake-up A Pch Millionaire Prize winner.

  27. William Roberts Jr. says:

    Good morning Pch, me again, Happy New year, and I’m still waiting to win this $3Million.Dollars for My Dream Home, still waiting for you to make my dreams come true, that is if you really do that, or was you just kidding, Pch, I need to win this, and what keeps me hungry for this is my living conditions, now, please make away for me to win this $3Million.Dollars for My Dream Home?

  28. Geri says:

    We are retired and would love to win to pay bills, help our children, and maybe some travel.

  29. Herbert Smith says:

    Waiting for my prize because I am a winner.

  30. William Roberts Jr. says:

    Pch, the $10,000.00 a week for Life Looks good also, or the $1Million Dollar’s superprize sweepstakes, either, I just want to win so that I can own our own home, at the age of 59 years old and my wife is 53 years old. Please make my dreams come true?

  31. William Roberts Jr. says:

    Pch, Merry Christmas and a Happy new year, for the many years that I been entering to win this $3Million.Dream house, please make my dreams come true, I seen the Dream home that I want here in Lexington North Carolina, please, please, please make my dreams come true? Thank you for Listening Pch

  32. Audrey O says:

    Would love to win, life would be so much better in helping my family and others that we have always vowed to help should we ever come into money!!

  33. Audrey O says:

    Everyday I have to enter another notice from you all. Why is it if I don’t but I don’t win. That just doesn’t seem right, for once let me have a chance I have filled out every thing ever sent it gets to be overkill!

  34. April Taylor says:

    If I could win on this sweepstakes I would like to pay off all my depths including my house and donated some to a Cancer Foundation for the memories of my late husband David and also for the Children’s Cancer Foundation, and also my Christian family church…so I like to wish everyone they play this sweepstakes.. Good Lock to all of you… And God bless…

  35. curt Bernard says:

    December 20 and Curt bernard claims that prize Gwy no.4900 & 4950 also3818. &4650 € 4749 $ $ $. …..Pch.com Please visit our home!

  36. bobby medina says:

    Yes it would be a blessing and bills paid. Help family and help many people in need.

  37. Charles R suttles says:

    My wife and I will celebrate our 60th Anniversary on
    Oct 27, and I can’t think of a better gift, than to win the Big Prize. We were married on Oct 27th, 1956.
    Then, we could celebrate for the rest of our lives.
    Our opportunities to spoil our Grandchildren would be
    especially fun, since we have always been so far apart, except on special occasions. Then, there’s the church, which needs upgrades and ect.
    WOW, just boggles the mind, thinking about the possibilities. Charles R Suttles

  38. john l harbour says:

    this sweeps never allows me to enter

  39. Pamela says:

    I want to win to bless others-let JESUS shine and all will be added to me

  40. Donnitta Jackson says:

    Come on pch!!!!!!!! 4ft millionaire donnitta Jackson 4900

  41. Ron Saxon says:

    I would like to win any prize that you guys have for me …

  42. Vincent Munoz says:

    Wish to win so I can get my kids back and help my family

  43. Valarie says:

    I would love to purchase a new home and help others.

  44. Randy Woods says:

    I need to win simply to help my 2young adult youngans, Father,Mother,Brotherand family,homeChurch,Friends, then myself if possible,thank you.

  45. Jeannette DuBois says:

    Good afternoon.
    I would like to win the $10,000.00 A WEEK FOR LIFE PRIZE on December 3,2015, or any other prize associated with PCH Giveaway.
    Thank you for the opportunity of applying and I would love to meet The Prize Patrol Trio!

  46. Thomas L. Cole says:

    Please I would like to win the major prize of 10000 a week for life and I would purchase a lot of things from you.

  47. Rosalia Bernsteinn says:

    I really need to win. I just got out. Of the hospital and my kids are talking about placing me in long term assisting. I am only 62. Very self sufficennt. But. None of them want to
    Have me in their life. Please help me. I need to win so I can make my own
    Decisions & try to enjoy my. Life. Please PCH why I am begging to win

    Oh Dear God & PCH folks please help
    Me. Thank you and God Bless.

  48. Kenneth lucas says:

    I want to Win publishers clearing house superprize 1830 so I can have fun and keep playing pch

  49. mary oseguera says:

    i hope and pray that i do win the set for life to help out my children and grandchildren and then buy myself a house for me and all five of my children so they can be happy in there own house

  50. Janice Chase says:

    I’m ur imminent winner Janice Chase. I have Landed in winter garden Florida waiting for you to Knock knock Pch are u here yet with my cash for the Pch mega millions jackpot . I will pay taxes Janice Chase Imminent winner of the super prize… Yes oh yes.

  51. William Newmans says:

    I would love to win the 4900 pch gwy money. I am looking for a new place to live my wife is divorcing me so I need the money it would be awesome if I won.

  52. Linda King says:

    I would love to win so I can help the Church, family and friends & others. Lord willing we will see you all for the $7,000.00 giveaway #4900 for life on Friday October 23rd. Thank-you

  53. Carolyn Dinelli says:

    I will win

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