I was examining to see how much I’d spend in taxes for a modest sweepstakes acquire ($ 8000+) and it would seem something below $ 8367 is taxed federally at a ten% rate. I have always heard on gameshow and lottery winnings it truly is typically at a third but that is only for greater winnings right?
I have no other cash flow to report and so as a result will drop in the ten% bracket correct?
Answer by Smiling
If the sweapstakes organization pulls the taxes, you will possibly be taxed at 40%, which is the normal price for lump sum payments. When you file taxes, it is dealt with like common earnings tax, so you would get the excess refunded.
Solution by tro
the least expensive tax rate is ten% however as one’s cash flow raises so does the price
if you obtained $ 8000 sweepstakes, that provides that quantity to your gross cash flow and thereby raises your taxable revenue
it will all depend on how numerous exemptions and deductions you have
Answer by card-ron
Sweepstakes winnings are considered typical revenue and taxed at your marginal tax rate. If your complete income for the year puts you in the 10% bracket then you would spend 10% on the sweepstakes winnings. If your complete earnings for the yr puts you in the 15% tax bracket then you would spend 15% tax on the winnings. And so on.