I've seen that game show "Deal or No Deal" and my stepmom told me that the government may actually take out as much as 50% or even as high as 60% in taxes if the dollar amount is like over $80,000 or $150,000 or whatever.
How much would they take out in taxes, really? And would it be a one time thing or would they next year take out even more taxes from that same dollar amount?
2007-04-25 09:03:45 · 10 answers · asked by Anonymous in Politics & Government ➔ Government
How much would I be free and clear, really after all the taxes are taxes are done with?
2007-04-25 09:05:40 · update #1
How much would I be free and clear, really?
2007-04-25 09:06:28 · update #2
40% is tops by the federal but then the State the winner is in mite take a hunk too.
2007-04-25 09:15:55 · answer #1 · answered by zipper 7 · 0⤊ 1⤋
That depends on a lot of things.
One of them is the tax bracket the contestant was already in. For example, If the person was already in a high tax bracket, the prize money might not push them up one.
Another is where the contestant lives. If they live in a state like New York or California, then they also have to pay State income tax.
Some states also have their own taxes in place for gambling winnings.
There isn't really a simple answer to your question about how much they get to keep. It depends a lot on how much they won, and how much they already had. An accountant in your area could give you more information about what the taxes would be for you, and they'd probably enjoy the hypothetical challenge.
2007-04-25 09:15:41 · answer #2 · answered by Beardog 7 · 0⤊ 0⤋
If the prize is offered to you and not your dad and mom, and you have not the different earnings, then you certainly will would desire to document a federal tax return and could owe tax. you ought to get carry of a 1099 from the sponsor interior the quantity of $3,500. Your taxable earnings would be $2,550. Your tax would be $255. carry back a number of you funds for taxes, and revel on your prize. you're actually not concern to kiddie tax in this earnings. Your California return will bypass out of your federal return. you will in all possibility owe some money to California.
2016-11-27 20:16:26 · answer #3 · answered by calderon 4 · 0⤊ 0⤋
Your stepmom is right. And they take it out before they even give you the money. It's not earned income so it is treated diffrently. Same for if you win a lot of $$$ in Vegas. Anything under $5K is tax free after that, tax man will be asking for their cut.
2007-04-25 09:07:46 · answer #4 · answered by ♥austingirl♥ 6 · 0⤊ 0⤋
You will be save if you figure 1/3 is taxes.
It is only a one time deal.
But if you invest and it is not a IRA you will
pay the taxes on your dividens and capital gains.
Every year.
Hope this Helps?
Ben
Don't forget to rate Please.
Thanks
2007-04-25 09:13:11 · answer #5 · answered by benhogan7 3 · 0⤊ 0⤋
The highest tax rate is 35%. In the upper prize winnings most would be taxed at that rate. There would also be state tax that varies with the state.
You should know that most game shows paying $500,000 and up pay it as an annuity. "Who Wants to be a Millionaire" pays up to $250,000. If the prize is $500,000 then $250,000 is paid over 10 years. If the prize is $1,000,000 then $750,000 is paid over 20 years.
From official web site:
Cash prizes of Two Hundred and Fifty Thousand Dollars ($250,000) or less will be awarded to Contestants thirty (30) days following the broadcast date in which the Contestant completed Game play; provided, the Contestant meets all requirements of Game Sponsor. Winners of cash prizes of Five Hundred Thousand Dollars ($500,000), who meet all requirements of Game Sponsor, will be awarded (i) Two Hundred and Fifty Thousand Dollars ($250,000) thirty (30) days following the broadcast date in which the Contestant completed Game play and (ii) Two Hundred and Fifty Thousand Dollars ($250,000) paid in equal annual installments over the following ten (10) years. Winners of cash prizes of One Million Dollars ($1,000,000), who meet all requirements of Game Sponsor, will be awarded (i) Two Hundred and Fifty Thousand Dollars ($250,000) thirty (30) days following the broadcast date in which the Contestant completed Game play and (ii) Seven Hundred and Fifty Thousand Dollars $750,000 paid in equal annual installments over the following twenty (20) years. In cases where a Contestant will receive the annual payments described above ("Periodic Payments"), the Game Sponsor reserves the right, in its sole discretion and without prior notice, to assign Game Sponsor's obligation and liability to make such payments to a third party.
2007-04-25 09:12:29 · answer #6 · answered by Barkley Hound 7 · 0⤊ 1⤋
Well, that kind of money is taxed at the highest rate allowed, but I think its around 30%.
2007-04-25 09:09:06 · answer #7 · answered by smartypants909 7 · 1⤊ 0⤋
30%
2007-04-25 09:08:00 · answer #8 · answered by plhudson01 6 · 1⤊ 0⤋
figure 25-30% in taxes.
2007-04-25 09:08:58 · answer #9 · answered by Anonymous · 1⤊ 0⤋
not clue sorry .
2007-04-25 09:27:40 · answer #10 · answered by nena_en_austin 5 · 0⤊ 0⤋