Do you have to pay taxes on winning a savings bond?

I won a savings bond through a private school's benefit and was wondering if I have to pay taxes on that winning if it is in the form of a bond. I have the option to get it in cash winnings, so would I have to pay taxes for that also?

Answer:
Yes you must pay taxes on your prize winnings. You can take a deduction for the ticket that you purchased to have one the prize if you itemize on Schedule A. if you take the US Bond you only pay the tax on the amount that the school payed for the bond now and when you cash the bond in you pay tax on the interest. For example if the school paid $37.50 for the bond that will be your taxable amount and you will have $12.50 in interest when you cash it in 20 years or so from now.
yes and no. Yes it is taxable. If there is no 1099 processed to show that you received the winnings, there is really no proof and if it is not for a large amount no one is going to come looking for you.
Yes, when you receive the bond or cash option, you will be eligible pay tax.

The answers post by the user, for information only, BAnswer.com does not guarantee the right.

Other Questions and Answers:
  • I recently moved to Manhattan but still work for a company in Maryland. Can I still pay taxes for Maryland?
  • I owe taxes can't pay what I owe asked for tax extention in April?
  • Claiming from the IRS in the US ?
  • If the overseas employer sends me to India for an assignment on a short term basis, how to maintain NRE benefi
  • If you enter a raffle to win a luxury home, and win, How do you pay the income taxes?
  • if i have two jobs, do I pay more tax??
  • Anyone knowledgeable about IRS & Taxes?
  • what is the sales tax percent in colorado?