If you enter sweepstakes, what percentage of your winnings will they take for taxes?
Jan 9th, 2012 | By admin | Category: Uncategorized
kitt7371 asked:
I love to enter cash sweepstakes. I was wondering if I won, how much would Uncle Sam take? I live in MD. Like if I won 25,000…How much would I actually get?
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i don`t know about 25,000 but i knew someone who won 100,000 and she ended up with about 64,000
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Whatever your state tax and federal tax is. In New York, you’d receive about 60-65% of your winnings.
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40% of $ 25,000.00 is $15,000.00 Taxes are $10,000.00 now think on what you will be spending it .
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the US prize tax is about 40%
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They Federal Government has an automatic 25% withholding. This is not the total income tax liability. The total federal income tax liability will be the 25k+earned income +unearned income+or- adjustments-exemption-deductions=taxable income*tax rate.
For the state of Maryland is your MD tax rate percentage.
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You will end up with about %60 of your total winnings. So, if you won $25,000 then you can expect to net about $15,000.