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2 Answers

Paying taxes on a prize won?

Asked by: megan 922 views YA Discussion

I just won a trip to the marlboro ranch in montana 4 day 3 night stay im so excited! they say the entire trip is worth about 5000 and that im responsible for paying any taxes im just wondering if anyone would have an idea of how much i would have to pay for taxes?

Asked: April

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  • dio i have to pay taxes on a tiny prize
  • how much paid in taxes for free maralboro trip?

2 Answers

  1. Judy on Jun 01, 2011 Reply

    If you’re in a 15% bracket, probably $ 750 for federal, maybe also some for state. That’s still a real cheap vacation. Congrats on your win.

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  2. StephenWeinstein on Jun 01, 2011 Reply

    The total tax that you would have to pay for the year is the tax on whatever the sum of $ 5000 plus whatever else you paid during the year is. The amount you would have to pay because of winning is whatever the difference is between the tax on that sum and whatever you would have had to pay in tax for the year if you did not win.

    It could be as little as $ 0 or it could be over $ 2000. It depends almost entirely on how much other income you have, but it also depends on the state where you live and a bunch of other things.

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