How much taxes do you have to pay if you won million dollar sweepstakes?
Sep 15th, 2011 | By admin | Category: Uncategorized
Honda asked:
This is only hypothetical question but I was curious as to how much you have to pay taxes if you won $1 million from sweepstakes?
If it is, let say 40% of winning goes to taxes then can I donate of that percentage to charity and don’t pay taxes?
Website content
The amount you pay depends on the rest of your income. For federal, the highest tax bracket is 35%.
Donating 35% to charity doesn’t work. Even if you could donate 35%, you’d have to recognize the remaining 650,000 and pay tax on that.