In the US how much tax do you pay on game show winnings?

Question

I am from Canada and watch Deal or No Deal and I wonder if they win $100,000 how much they get to take home. Here in Canada we get to keep 100 % ( we get taxed for our air )

Answer 1

In the U.S., when you receive money or prizes from somewhere other than your regular job, a tax form is given to you or mailed to showing the value of what you have received. At the end of the tax year, the value on these forms is added to the earnings form received from your job. The total is your taxable earnings. The tax is paid on the total following IRS rules.

For instance, if you make 35,000.00 a year and you win 5,000.00 lottery, your total income would be 40,000.00 and that is what you would pay tax on.

In some cases, when you win, an estimated tax is taken out before you receive "the prize". At the end of the year, when you calculate the total income received and taxes paid, that estimated tax is figured in. If they took out too much in estimated taxes, it becomes part of the refund from IRS. If you haven't paid enough, you send a check with the tax forms.

In the U.S., the tax percentage you pay is based upon your total income for the year. Someone with a low income may pay nothing, some with a moderate income may be taxed at 15%, a higher income might be 25% and so on.

Answer 2

In the States it is a 40% tax

Answer 3

It depends on the state, every state has different taxes on winnings.