2006-06-29 06:19:36 · 8 answers · asked by thatgirluknow 3 in Business & Finance ➔ Taxes ➔ United States
$70,000
2006-06-29 06:22:26 · answer #1 · answered by Tim 4 · 0⤊ 0⤋
If you win the car, you have to count the value of the car on your income taxes. The Feds will want about 27% of the value of the car for taxes, or $19,000. Your state tax will vary (That's why I moved to Tennessee, no state income tax.)
Also, be careful with a prize that big. Most workers have their taxes withheld, but the law says that if you don't have it withheld (such as the tax on your prize), then you have to pay ESTIMATED TAXES at the end of the QUARTER, not year, that you won it. Quarterly taxes are due on April 15, July 15, October 15, and January 15.
If you won it in June, you have to pay the taxes by July 15.
If you owe too much on your 1040 that you file on April 15, there's a penalty for not withholding enough during the year (in addition to the tax itself that you owe with your 1040).
2006-06-29 09:23:13 · answer #2 · answered by Anonymous · 0⤊ 0⤋
It depends on how much money you make now (price of car is added as total compensation) and what the rates are for your particular state. Chances are you will have to sell the car to cover the tax burden, or your other option is to give the car to charity, in which you will have no additional tax burden.
2006-06-29 07:22:02 · answer #3 · answered by DevelopmentArrested 1 · 0⤊ 0⤋
You will owe both state and federal taxes about 40%
2006-06-29 17:05:16 · answer #4 · answered by trailsman1961 3 · 0⤊ 0⤋
You don't need that car. Just give it to the IRS and be happy.
2006-06-29 06:24:22 · answer #5 · answered by Rev. MoonPie 2 · 0⤊ 0⤋
About $25,000 - $33,000 depending on the state you live in.
2006-06-29 06:23:01 · answer #6 · answered by cyanne2ak 7 · 0⤊ 0⤋
35-40% So $21,000-$28,000 (assuming you can't make any deductions).
2006-06-29 06:23:22 · answer #7 · answered by cirestan 6 · 0⤊ 0⤋
Dont worry about it....cuz it wont happen
2006-06-29 06:22:57 · answer #8 · answered by Anonymous · 0⤊ 0⤋