General Question

babiturtle36's avatar

Let's say you win $10,000. How much will they take out for taxes?

Asked by babiturtle36 (2339 points ) April 8th, 2008 from iPhone

My mother just won $10,000 from a radio contest in Florida. How much will they take out for taxes?

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18 Answers

Kay's avatar

Here’s an article from Bankrate.com that explains it pretty well:
http://www.bankrate.com/brm/news/advice/20020520b.asp

Florida doesn’t have a state income tax, so that helps. I would consult an actual financial advisor though, it definitely varies by state and amount won.

nikipedia's avatar

No idea, but congratulations to your mom!

babiturtle36's avatar

Thanks to you both. :)

glial's avatar

30–40%

Zaku's avatar

It’s just income, isn’t it? I’d assume it’s just like tax on any other $10,000 you receive.

sndfreQ's avatar

Many states have a prize tax, such as states that carry lotteries or legalized gaming. This is different than income tax, and again, varies from state to state and even county to county.

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sndfreQ's avatar

@rvjsf: really? Or are you just being facetious with your comment?

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sndfreQ's avatar

Sorry, I have to correct myself from the above assumption: “prize tax” is no different than income tax on the value of the total prize; if your mom won $10,000.00, then that as zaku has stated above, your mom’s winnings will be considered as taxable income by the fed, IRS will still collect.

The news on lottery winnings is even worse; depending on local, state, and federal laws, you could pay as much as 38 percent of your winnings toward a “lottery tax.” Ouch!

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Spargett's avatar

Some of those rates are pretty steep. I guess that’s the cost of free money.

I wonder if the government can still tax your winnings if you placed the in a Roth IRA?

Zaku's avatar

Oh yeah, I’m in Washington state, where we have no sales tax (yay!). We just have an 8.something% retail sales tax, and real estate property taxes.

pattyb's avatar

in NY or NJ about 40% . FL might be different.

gailcalled's avatar

I believe that the $10k will be treated like ordinary income, and if she takes it in one lump, will be added to her AGI at tax time. Do check with a CPA however.

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Fancymouse's avatar

wow thats a lot of money

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