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/
If I won I would buy my mom a new house pay off my debts and live good
Raymond Phillips
GWY 6900
This is something I’ve been doing for many years playing and dreaming that I wouldn’t ever have to worry about financial heart-shaped, if given this opportunity I would bless those in need and live the dreams I’ve always had in my life!!
I would love to win I’ll pay taxes on it just add me to the final winners list for gwy 6900 october21, 2016
oh yes i would
I DON’T KNOW WHY I RECEIVED THIS NOTICE UNLESS I’VE WON SOME MONEY. TELL ME DID I WIN THE 5,000 A WEEK FOREVER? DON’T WORRY, THANK YOOU SO VERY MUCH. I WILL PAY MY TAXES. PRIZE PATROL COME ON OVER TO MY HOUSE. I’M READY!!!!
U now what’s Pch prizes sorry luck who pays Pch prizes are free anyways I’ve gone throw 10 phones 10 thousand argument s with my wife over Pch and I will keep playing Pch rocks
Same here my wife tell me im not gonna win but guess what im not gonna stop playin for sure gonna win won day!
Wow that was a long list I had to go through well this VIP from PCH is still searching for prize number 2 can this be my prize if it’s not my prize then how about we make it my price so I can move in you know I will Doolittle flipping and flopping how’s that sound well I gotta run gotta play don’t have time to talk gotta go have a good evening everybody
Wow that was a long list I had to go through well this VIP from PCH is still searching for prize number 2 can this be my prize if it’s not my prize then how about we make it my price so I can move in you know I will Doolittle flipping and flopping how’s that sound well I gotta run gotta play don’t have time to talk gotta go have a good evening everybody
IF I WIN I WILL DO THE 5 THINGS YOU TOLD ME. I REALLY WANT TO WIN. I WOULD PAY OFF MY BILLS,SAVE AS YOU SUGGESTED AND BUY SOMETHING NICE. THE PEOPLE I HAVEN’T HEARD FROM IN YEARS YOU SAID TO AVOID BECAUSE ALL THEY MIGHT WANT IS MONEY.I PROMISE TO STAY HUMBLE AND TRUE TO MYSELF.I WILL CONTINUE TO TAKE CARE OF MY MOTHER AND MY HUSBAND,GIVE TO A ORGANIZATION FOR BURNED OUT VICTIMS AND MY CHURCH. OHHHH YES. I WILL NOT FORGET TO PAY TAXES. PLEASE GEIV ME THE OPPOTUNITY TO BE A WINNER AUGUST 31,2016
Astral projected
I would like to thank the pch staff the dream of a lifetime forever comes to 1007 w Calle az Tucson az 85705 the awesome reception will be between the hrs of 10am to 3 pm I accept your forever super prize or prizes it’s OK if you want to have the media here with prize patrol bringing on balloons champagne flowers brought to me after stopping on 4th Ave florist prize patrol bring a lump sum check 10000 a week forever grand prize super million a year for life and my new car and or truck what ever I am ready to share with my family friends and foe thx x.jason Thomas Thompson