I was checking to see how much I'd pay in taxes for a small sweepstakes win ($ 8000+) and it seems anything below $ 8367 is taxed federally at a 10% rate. I have always heard on gameshow and lottery winnings it's generally at a third but that's only for larger winnings right?
I have no other income to report and so therefore will fall in the 10% bracket correct?
Answer by Smiling
If the sweapstakes company pulls the taxes, you will probably be taxed at 40%, which is the standard rate for lump sum payments. When you file taxes, it is treated like standard income tax, so you would get the excess refunded.
Answer by tro
the lowest tax rate is 10% however as one's income increases so does the rate
if you got $ 8000 sweepstakes, that adds that amount to your gross income and thereby raises your taxable income
it will all depend on how many exemptions and deductions you have
Answer by card-ron
Sweepstakes winnings are considered regular income and taxed at your marginal tax rate. If your total income for the year puts you in the 10% bracket then you would pay 10% on the sweepstakes winnings. If your total income for the year puts you in the 15% tax bracket then you would pay 15% tax on the winnings. And so on.
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