If you receive a prize from a tv show how much is taxed?

Question

If you receive a prize from a tv show that is taxed along with airfare and lodging that totals about $2800 I know this is added to your income at the end of the year but how much is taxed on it state and fed?

Answer 1

With the graduated income tax, the amount taxed would depend on your overall income for the year. The prize does not get taxed separately.

Answer 2

Once again, there are a lot of answers given, many incorrect.

If you call the IRS they can tell you for federal - it's generally the entire value, which will be added to your income for the year when figuring your tax, so the tax varies depending on your bracket which is determined by your total income including the prize. The place you win the prize from will probably withhold some taxes, but that's just withholding, the calculation will be done on your return at the end of the year with the rest of your income and you might owe more or less than the amount withheld.

For state tax, varies by state. The state website probably gives a place to call for tax questions. I live in Pennsylvania, which has a flat rate, so would be easy to estimate/calculate the tax, but some states don't have an income tax, and some are progressive, so you need to find out about your state.

Answer 3

Depends on the state you won the prize in, usually about 30-40%.

Answer 4

my daughter won a car and the value was added to her taxable income for that year

Answer 5

the term is gift tax, and if you do it correclty it will be around 40% and it will count tward your yearly taxable income. (meaning you will be taxed for it twice)

Answer 6

Standard levels, about a third

Answer 7

In India, it is 30% i think US is the same.

Answer 8

37 %

Answer 9

in australian its all tax free!!