I live in the state of Pennsylvania, and I won prize money with the amount of $4,000. I was wondering how much of that will the government take for taxes? How much of the money will I see?
Thanks! =]
2007-06-26 13:25:56 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
It depends on where you won it. If it was from a PA lottery, then you won't pay PA income tax on it - otherwise you'll owe the regular 3.07%.
Federal taxes will depend on your other income and your personal filing situation. They might withhold 20% from your prize for federal taxes - you could actually owe less or more than that. You'll show it on your tax return at the end of the year, and show whatever they withheld with any other withholding that you have. If you paid in too much, the IRS will refund the difference - if you didn't pay in enough, you'll have to pay the extra.
2007-06-26 14:42:45 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
25% or more. I have seen as much as 47% in some cases.
2007-06-26 21:28:36 · answer #2 · answered by THE Answer 2 · 0⤊ 1⤋