I recently won a seventeen sweepstakes for $500 .. was wondering how much am i going to get taxed on it?
2007-12-14 17:21:13 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
You'll pay federal income tax at whatever your rate is, You'll show it on your tax return as "other income".
2007-12-14 17:32:16 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
If you won a sweepstakes from Seventeen magazine, you might be a dependent or a young person with little or no other income.
If you are a dependent on someone else's tax return, and total income is less than $5,350, then you are not required to file, and you would not owe income taxes on this money.
If you are required to file a tax return, include the $500 on Line 21 of Form 1040. This money is not subject to Social Security or Medicare Taxes. If your tax bracket is 15%, then your income taxes would increase $75 because of your winnings.
2007-12-15 02:55:46 · answer #2 · answered by ninasgramma 7 · 0⤊ 0⤋
It's ordinary income. It's like your bank paid you $500 in interest. If you are in the 10% income bracket, you'd pay $50.
2007-12-14 17:32:16 · answer #3 · answered by Anonymous · 1⤊ 0⤋