I am on full disability (SSDI), I won $10,200.79 on a game on Television. They are sending me a form to fill out for taxes (think it was 1099?) and an affidavit, once that's sent back I get the check in 10 days. My 2 questions are.....
1.Do I have to pay taxes on that money?
2.Aren't I able to make a certain amount of money each year without paying taxes on it?
Thanks for your help. harleynh
2007-02-19 13:21:54 · 11 answers · asked by harleynh 1 in Business & Finance ➔ Taxes ➔ United States
Yes you have to pay taxes on it, but with that amount if you have no other income than your SSD it should not make any of the SS taxable.. You won the money it is a prize and it would be reported on line 21 of the 1040 as other income. It is not wages earned which is what SS looks for.
2007-02-19 13:37:09 · answer #1 · answered by Anonymous · 2⤊ 1⤋
Of course as you are already smart enough to know to ask this question and make such a remark about you are sure that they DID NOT just hand over the keys to the car at that time and tell them that it was free and clear and that they could drive it home at that time. As you already know that the person that wins the car will also have to go to the dealer ship and pick out the vehicle and let them fill out ALL of the necessary needed paper work that will be required by the DMV in your state for this purpose and pay ALL of the necessary required TAXES, FEES AND etc that will be required before you can get your temporary LICENSE FOR this NEW vehicle and then be able to drive it around and wait for a while before you will receive your regular license plate for this new vehicle at that time. And IF the winning of the car DOES NOT MEET the IRS rules for it to be a GIFT from one individual taxpayer to another individual taxpayer then the FMV of the car would also be subject to income taxes on your correctly completed 1040 federal income tax return. Hope that you find the above enclosed information useful. 06/22/2011
2016-03-29 03:35:10 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you are not employed, that $10,200.79 is still counted as income even though you did not work. You have to pay both federal and state taxes BUT you can earn a refund when you file your tax returns.
If you have SSDI - work triggers a benefit review. You can call Social Security and let them know that you were lucky on a game show BUT I cannot imagine that Social Security will initiate a benefit review if you remain unemployed. If you were receiving SSI - then you would kiss that goodbye. If you are receiving SSDI, Social Security wants to know if you're working so you can pay Social Security taxes rather than receiving them.
2007-02-19 13:47:18 · answer #3 · answered by Anonymous · 1⤊ 3⤋
Yes U must pay taxes on it. You have the option of having taxes taken out of the winnings before its sent to U or taking the complete winnings amount and paying the taxes at the end of the year. If U elect the second option and forget to pay the taxes at
the end of the year U will end up in court. The fat gay guy on the original surviver who won the million had his day in court. He
forgot to pay his taxes. Always boasted how smart he was.
2007-02-19 13:33:51 · answer #4 · answered by Anonymous · 1⤊ 3⤋
1. Yes, it's taxable.
2. Since it's unearned income, the limit is $850 to avoid filing.
IMPORTANT: Check with Social Security and see if this will affect your SSDI. If it does, you may want to refuse the prize.
2007-02-19 15:44:11 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 1⤋
You will have to file taxes. Usually if you are on full disability you do not have to file because disability is not taxable, but because the amount of money you won is over $1200.00 you have to file taxes on it. You will pay the taxes due on it when you file your 2006 tax return.
2007-02-19 13:43:53 · answer #6 · answered by Jessica 2 · 1⤊ 2⤋
1) pay taxes - yes
2) you are over that amount
this is 2007 income! They probably will withhold money from your winnings!
2007-02-19 13:54:45 · answer #7 · answered by Dizney 5 · 0⤊ 0⤋
1. Yes you must pay taxes it is over $10,000. Plus combined with what you get from SSDI makes it too much for tax free status.
2. Make sure you tell SSDI about the money as soon as you get it, or they will stop your benefits for fraud when they do find out.
You have to declare all income to them when it happens, no matter how you got it.
2007-02-19 13:27:04 · answer #8 · answered by Pantherempress 7 · 2⤊ 4⤋
I thought no matter what you make... under contract you are liable to pay all taxes on prizes and moneys won on shows at the discretion of the studio. Look into it.. I am sure you have to pay taxes.. regardless of what you have made!
2007-02-19 13:26:44 · answer #9 · answered by Anonymous · 1⤊ 3⤋
Yes you have to pay taxes
And No, you pay taxes on ALL the money you make.
2007-02-19 13:25:51 · answer #10 · answered by fade_this_rally 7 · 1⤊ 3⤋