I won a trip from Marlboro Racing School with $3000 of it being cash and the additional $9000 is for the trip, etc. I know I have to pay taxes on it, but I have no idea how much that will be. Any ballpark figures would help!
2006-11-11 04:16:13 · 2 answers · asked by alexis 1 in Business & Finance ➔ Taxes ➔ United States
If you received a prize of 12,000 then you add it to your total income on the other line on form 1040. In 2005 it was line 21 and in 06 will be close to that line. In the 15% bracket you will face $ 1,800.00 in federal income tax on the 12k. The next brackets range up from 25, 28, 33 and 35%. Get an instruction booklet for form 1040 and plug in your total taxable income for an exact figure.
2006-11-11 05:26:23 · answer #1 · answered by acmeraven 7 · 0⤊ 0⤋
State and federal should come out to $3720.00
2006-11-11 12:21:27 · answer #2 · answered by Anonymous · 0⤊ 0⤋