Would you have to pay bothfederal and state? of just federal?
2006-12-06 04:49:21 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Federal definitely, state maybe - if it was from the state lottery, then probably not, otherwise probably yes.
For federal, it would add to your other income for tax calculation, and would depend on the amount of your other income, and your filing status (single, married joint, married separate, head of household). Would probably be something like $50,000 to $60,000, or as much as $70K if married filing separately.
State tax would depend on the state - probably $6000 to $20,000 depending on whether you're in a high-tax state or a lower-tax state.
Would still leave a lot after taxes.
2006-12-06 05:03:18 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
If you win $200,000 anywhere, you should consult a tax professional and an attorney before you claim the prize. That said, it is subject to federal income tax. Depending on the state where you win and the state where you live, there may or may not be state income tax due. According to the 2007 tax rate schedule, $200,000 puts you in the 33% marginal tax rate. If you file "married filing separately, you are in the 35% rate.
2006-12-06 12:22:08 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
If you were a citizen of the state that you won and it didnt have state tax then no but 1 or the other you would have to pay state tax. I would say $56,000 federal
2006-12-06 04:59:45 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It would be treated as regular income in the US. Consult tax tables in Publication 17 issued by the IRS (do a search at irs.gov) and it will give you a precise answer. Be sure to add your income from this year to the 200K prize to determine your total tax bill.
2006-12-06 04:55:54 · answer #4 · answered by AustinoBambino 2 · 0⤊ 0⤋
around 40%
2006-12-06 04:52:29 · answer #5 · answered by Your #1 fan 6 · 0⤊ 0⤋