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Johnny

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On a cash prize how much taxes is calculated?

Few days ago, I won $500 as a prize at work. It taxed the cash prize. Before I heard that on $1000 taxes are charged. Please clear my confusion. what are the rules of taxes on $500 prize?

148 day(s) ago

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BartSim 		In USA, paying taxes on winning amount starts from $1. So, on $500 tax would be taken off. If the prize you won is at work then on W2 form you have to mention and show the details similar as you show the details of general income tax. So, you have to pay the taxes on your prize

Posted 148 days ago

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Steve01 		Congratulation! Legally on $1 taxes are paid. There is also a rule that if the prize is won on lottery that is state lottery then state income tax is not taken or in else situation winner have to pay it. So, both state and federal taxes are taken on wining amount but depending on the regulations they maintain.

Posted 148 days ago

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