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.
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/
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
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
Please let this be my Dream come true!!?
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
Pch it would be nice to wake-up A Pch Millionaire Prize winner, but, I know that I was just dreaming,
Pch it would be nice to wake-up A Pch Millionaire Prize winner.
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?
We are retired and would love to win to pay bills, help our children, and maybe some travel.
Waiting for my prize because I am a winner.
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?
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
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!!