I won a free trip in which the approx. cost is $5000.00. The catch is that the only thing that is to be paid are the taxes for the trip. I make $35,000 a year ( which I think puts me in the 25% tax bracket) how much would I be looking to pay ? Please help! Thank you!
2007-04-19 03:09:37 · 2 answers · asked by KLM 2 in Business & Finance ➔ Taxes ➔ United States
If the 35K a year is your gross, not your take-home, the assuming your filing status is single, you'd normally be in a 15% bracket after your exemption and standard deduction are subtracted. The prize would push you into the 25% bracket by about $900. So you'd pay 25% on $900, or
$225, and 15% on the other $4100, or $615 - total around $840. Not bad for a $5000 vacation if it's someplace you want to go.
If the $35K is your takehome after taxes, then you'd probably be paying 25% on the entire prize, or $1250.
Enjoy the trip.
2007-04-19 03:47:54 · answer #1 · answered by Judy 7 · 2⤊ 0⤋
It could be more than what Judy says, depending on what state/city you live in.
2007-04-21 22:43:07 · answer #2 · answered by borat_almaty 2 · 0⤊ 0⤋