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Yes. If you win any prize, the "fair market value" of the prize is taxable.
Look at the HGTV.com "dream home" giveaways. So far, NOT ONE person who has won the house has moved in; in every case, the winner has had to sell the house to pay the tax bill. The last few "dream house" giveaways have included a substantial portion of the value in terms of cash, cars, furniture, and other things that the winner could sell instead of the house to make the tax payments, but so far no one has.
Calculation of the US Federal income tax is so complicated that even most IRS agents can't do it accurately. Not even Treasury Secretary "Tiny Tim" Geithner could do it, and Representative Barney Frank, who is responsible for WRITING the tax code, hasn't paid his own income taxes. Consult a tax adviser, and get a second opinion, and don't ask WikiAnswers for detailed tax advice.
Here is the sad story of someone who actually tried to move into the Dream Home he won on HGTV:
http://www.kltv.com/global/story.asp?s=7451192
What else can I help you with?
Does a person with no income pay the same tax on lottery winning?
yes because it is a winning
What is the name of the tax you pay when winning the lottery?
Income tax.
What percent taxes do you pay on winning 117000 in Texas?
It is ordinary income and the amount of tax you will eventually pay, if any, is entirely dependent on your own personal tax situation, amount of deductions, other income, etc., etc.
What is annual income is it your top line or what you take home?
Annual income refers to the total earnings an individual receives over a year before any deductions, such as taxes or benefits. It is often considered the "top line" figure, representing gross income. In contrast, take-home pay, or net income, is what remains after all deductions are made. Therefore, annual income is not the same as take-home pay.
Do you pay taxes on a winning of 800?
This is possible and you would be the only one that would have all of the necessary information available to you that would be needed to fill out your federal and state income tax return correctly before you will know how much if any income taxes you would owe on the 800 amount of your winning.
What is another term that means take home pay?
net income...
Does vacation pay be paid on your annual income?
Yes, "vacation" pay is treated the same as any ordinary income.
Take-home pay is another name for?
net income
What is another name for take-home pay?
net income
What is another name take-home pay?
net income
Do you have to pay income tax on a home equity loan?
I don't believe you do. You will pay income taxes when you sell the house--this is called capital gains.
If a person does not work and only draw ss pay income tax?
If you have no other income except normal Social Security benefits, you will not have to pay any income taxes. This is also to note that you are not receiving any other retirement income, interest income, etc.
