Tuesday, April 13, 2010

If you win $25,000 (US) in sweepstakes living in california, how much tax would u have to pay?

Figure that you're going to half to pay half of the amount less the refund that you would have ordinarily gotten.





Figure 48%.

If you win $25,000 (US) in sweepstakes living in california, how much tax would u have to pay?
probably around 12,500 of it will go to taxes.
Reply:You must include all your winnings in income on Form 1040, line 21. If you itemize your deductions on Schedule A (Form 1040), you can deduct winnings/gambling losses you had during the year, but only up to the amount of your winnings.





So winnings is ordinary income that will be taxed at your tax rate. It is not subject to employment taxes.
Reply:It depends how much other income you have. The more you make, the higher tax bracket you are in.





Rough estimate: figure 25% will go for taxes.


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