I entered a contest and won a $250 gift card.
-Do I have to report this to the IRS and pay taxes on it?
-If so, will the place I won the gift card from give me paperwork or am responisble for it myself?
-What percentage are prizes taxed at?
2007-12-13 01:37:31 · 9 answers · asked by ♪ La La La Not Listening... 3 in Business & Finance ➔ Taxes ➔ United States
I live in the United States (IL).
2007-12-13 01:50:07 · update #1
1) Yes (Line 21 on the 1040)
2) Maybe. Even if they don't, you still have to report it.
3) Your marginal tax rate (10-35%)
2007-12-13 01:42:17 · answer #1 · answered by Wayne Z 7 · 3⤊ 0⤋
Yes, it's taxable income so you need to report it on the "other income" line of your tax return. It will be taxed at whatever your rate is for that year - depends on your other income.
For $250, the place you won it from is not required to give you paperwork called a 1099. They can, but probably won't.
2007-12-13 12:44:13 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
certainly. i replaced into on Who needs to be a Millionaire, and that i paid taxes on my winnings as commonplace earnings. the share you pay relies upon on your earnings bracket and the quantity you win. as an occasion, if your commonplace earnings is in simple terms $5,000 a three hundred and sixty 5 days, and you win $a million,000 on Who needs to be a Millionaire, you likely won't pay any taxes in any respect (because of the fact your complete earnings is so low which you do no longer pay federal taxes, era.). If although, you earn a million funds a three hundred and sixty 5 days on your interest, and you besides would win a million funds on a interest instruct, you will pay a physically powerful bite of taxes on your winnings. something interesting however from my own interest instruct journey: On Who needs to be a Millionaire, they do no longer deduct any federal or state taxes out out of your winning examine. this means that in case you win $10,000, they deliver you a examine for precisely $10,000. yet, you are able to desire to very straight away turn around and record a form with the IRS and prepay taxes, or you will finally end up owing a penalty later. (the government would not elect to anticipate their funds.)
2016-10-11 04:59:35 · answer #3 · answered by ? 4 · 0⤊ 0⤋
You will enter the amount on Line 21 on a 1040 form
2007-12-14 15:27:12 · answer #4 · answered by Gary 5 · 0⤊ 0⤋
whoever the people were that gave you the gift card, if they didn't ask you to fill out a w-9 with your social security number, they won't be reporting it to the IRS - federal minimum is $600 where they would be forced to report it
2007-12-13 08:15:25 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Most people would not bother to report it, but technically you are supposed to.
For $250, you are responsible for reporting it yourself.
You would include that in your gross income and be taxes at whatever rate you pay when the total tax return is filled out.
2007-12-13 01:41:57 · answer #6 · answered by Matthew O 5 · 3⤊ 1⤋
You don't need to report it if it's under a certain amount, and for most states, that is under the limit of $400-6000.
If you do report it as an earning, they take approximately 1/3rd of your earning.
$1 = $0.66 in your pocket.
2007-12-13 01:41:23 · answer #7 · answered by Anonymous · 1⤊ 4⤋
If it's a gift card you pay no taxes. If it were cash, then you would have to claim it as income if it was over a certain amount.
2007-12-13 01:41:13 · answer #8 · answered by just me 6 · 0⤊ 5⤋
First of all, it's depend on country. Where you come from?
2007-12-13 01:43:46 · answer #9 · answered by Vince S 1 · 0⤊ 3⤋