A prize from a radio station
2007-11-30 03:30:24 · 7 answers · asked by ChikaSexy 1 in Business & Finance ➔ Taxes ➔ United States
How would I know my tax bracket, I don't know exactly where I fall because I started a new job.
2007-11-30 03:38:01 · update #1
I would invest it all in a cd. Thats a nice chunk of change, but I would rather make more off it and be safe later when I have to pay the taxes on in (which, sorry, I dont the amount you should set aside). Maybe just set aside about 25% of the winnings if you want to have some money to play with.
If you wanted to go with investing it-look in to ING cd's they have awesome rates!
2007-11-30 05:45:37 · answer #1 · answered by Sunshine 4 · 0⤊ 0⤋
The highest bracket is 35%. Most taxpayers are in a 25% or lower bracket. If you set aside 1/3 you'll be safe.
Winnings are taxed as ordinary income, NOT at a higher rate as at least one poster incorrectly stated.
2007-11-30 11:58:13 · answer #2 · answered by Bostonian In MO 7 · 3⤊ 0⤋
If you are single and make under around $39K for the year, put 15% or $750 back for federal taxes, if you make over that put back 25% or $1250. You don't say where you live - there are probably also state income taxes, so put back another $250 for that and you'll probably be safe.
2007-11-30 12:36:58 · answer #3 · answered by Judy 7 · 3⤊ 0⤋
Look at last year's tax return to determine your tax bracket. Set aside that percentage for federal taxes, and set aside another amount based on your state tax percentage.
2007-11-30 11:35:19 · answer #4 · answered by heavy_psi 1 · 0⤊ 0⤋
Just to be safe, put away at least half. Winnings are taxed at a higher rate than earnings (Club Fed can take up to 45%).
2007-11-30 11:37:50 · answer #5 · answered by Anonymous · 0⤊ 3⤋
I would say about 40%.
2007-11-30 12:43:11 · answer #6 · answered by Wood Smoke ~ Free2Bme! 6 · 0⤊ 0⤋
All of it. When the taxes are paid, THEN spend it.
2007-11-30 11:37:38 · answer #7 · answered by Mr. Taco 7 · 0⤊ 2⤋