2006-07-16 05:21:54 · 13 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
too much, based on income and state taxes
2006-07-16 05:23:51 · answer #1 · answered by boxing_fan_4_wlad 5 · 0⤊ 0⤋
Each state has it's own tax regs, same with cities. Nevada and some other states have no tax on gross income.
The Federal tax rate you pay is based on adding your net winnings to your regular income. Income tax rates today range from 0% to 35%.
Net winnings equal the amount you win, if gambling, less your total gambling losses for the year. If you win something on a game show it will be the total less your expenses to participate.
Gift taxes are the responsibility of the giver
2006-07-16 06:32:33 · answer #2 · answered by Mary 5 · 0⤊ 0⤋
If you win a large amount of money, you will have to report it on your income taxes at the end of the year. Because the internal revenue code states that 90% of your taxes must be paid by year's end, you are going to want to make estimated payments. You will want to look up an irs form called form 1040-ES. You can get any tax form from your local irs office or you may download and print them online at http://www.irs.gov/formspubs/lists/0,,id=97817,00.html. Follow the instructions on that form. The amount of estimated tax you pay will depend on your anticipated tax for the year. On this form it will show you a table of income ranges for which the tax will be. As a previous answerer told you, gift taxes are the resposibility of the one giving the gift, and I believe this year can be up to $12,000 without being assessed, but that won't apply to you anyway. Hope this information helps.
2006-07-16 11:16:39 · answer #3 · answered by Josh 4 · 0⤊ 0⤋
depends on where you won it. Most states will collect state tax right at the time you win (if is is a large enough amount), and will give you the option of having money taken out for federal. You fed tax owed on it will be the same was whatever rate you pay on income.
2006-07-16 05:25:48 · answer #4 · answered by Anonymous · 0⤊ 0⤋
in adition to the normal income taxes there is a federal gift tax which i believe is %27. You are going to see approximately 1/2 your winnings.
2006-07-16 05:30:12 · answer #5 · answered by NubbY 4 · 0⤊ 0⤋
Income tax is based on amount of money you get so the more you get the higher % they take, if million or above figure you will lose half to taxes.
2006-07-16 05:25:06 · answer #6 · answered by miknave 4 · 0⤊ 0⤋
depends on the amount you win!
tax bite will be from 10% to 50% federal tax
I don't know what your states tax rate is!
2006-07-16 05:26:13 · answer #7 · answered by Pobept 6 · 0⤊ 0⤋
It's based on your income level. The winnings are just added in to everything else.
2006-07-16 05:24:01 · answer #8 · answered by Anonymous · 0⤊ 0⤋
that depends on the state, tax laws,your slab etc. You have to contact your CA
2006-07-16 05:26:37 · answer #9 · answered by GUK 3 · 0⤊ 0⤋
30%
2006-07-16 05:24:27 · answer #10 · answered by Anonymous · 0⤊ 0⤋