If you receive a prize from a tv show how much is taxed?
Answer:
With the graduated income tax, the amount taxed would depend on your overall income for the year. The prize does not get taxed separately.
Standard levels, about a third
In India, it is 30% i think US is the same.
my daughter won a car and the value was added to her taxable income for that year
Depends on the state you won the prize in, usually about 30-40%.
in australian its all tax free!!
37 %
the term is gift tax, and if you do it correclty it will be around 40% and it will count tward your yearly taxable income. (meaning you will be taxed for it twice)
Once again, there are a lot of answers given, many incorrect.
If you call the IRS they can tell you for federal - it's generally the entire value, which will be added to your income for the year when figuring your tax, so the tax varies depending on your bracket which is determined by your total income including the prize. The place you win the prize from will probably withhold some taxes, but that's just withholding, the calculation will be done on your return at the end of the year with the rest of your income and you might owe more or less than the amount withheld.
For state tax, varies by state. The state website probably gives a place to call for tax questions. I live in Pennsylvania, which has a flat rate, so would be easy to estimate/calculate the tax, but some states don't have an income tax, and some are progressive, so you need to find out about your state.
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
Other Questions and Answers: