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johnsnook

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Does anyone know how the IRS figures tax on winnings ($2,000 GC) ? Is it a flat rate, say like 10%, or does it depend on your income ?
 
Hey John. It depends on your income. Sometimes, just that little amount can put you into a much higher tax bracket or might do nothing but cost you a few pennies.

Good luck to you. :)
 
Thanks Wolfie, I hope that is right because I am unemployed due to an injury and probably will not return to work, so hopefully it will not cost me much because I have no income at all.
 
John, if you received it last year, it will be added to whatever income you had then.

I am sorry to hear about your injury. I hope you are doing better. :)
 
WOLFIE, Thanks for your concern, I can't work and the injury happened at home, so no unemployment. I am trying to get disability from SS but it seems that if I were an immigrant, I could get it a lot sooner, and with less effort. I have already been turned down for SSI. Maybe I could get a Grant for a new enterprise if I were a non citizen.
 
If you are re-applying for SSI, I strongly suggest that you get a lawyer. I know that it would be a financial hardship for you in your situation, but the system is set up to deny people not help them. There are a lot of attorneys out there who might take you up Pro Bono.

My husband broke his back 15 years ago and they denied him benefits. He works now... with constant pain. I work at a bank, so I get to see the same people every 1st of the month whose only disability seems to be lack of cleanliness. I'm sorry to sound insensitive, but it's true. Sometimes I think the hardest work they have ever done is getting those benefits in the first place... while honest saps with a legitimate claim foot their bill. Not everyone on SSI is like that, but in my experience they are a vast majority.

Good luck to you, I hope it all works out for you!
 
Definitely get a lawyer. Social Security will turn you down everytime without one. Disability lawyers usually don't get paid unless they win, and then they get a small percentage of the retroactive money you get. So, you know they won't take your case if they don't think they can win.
 
Disability lawyers take the case on a contingency. The max they are allowed, by law is 20% of the retro lump sum payment.

There is a 90% denial rate the first time around. Persistence will get you what you need.

Good luck.
 
I am sorry to hear about your injury. Get a lawyer and keep appealing, if they ever approve you, you will receive back pay from the time you first applied. Just don't give up.
 
When you do your taxes, report your winnings, then report your losses in the same ammount.(you cant report more losses than winnings) you will break even, not paying taxes on your winnings. Dont have federal taxes taken out when you win , You do have to pay state taxes at the time you win though.
 
LIDARKSIDE said:
Taxes on prizes are not dealt with until you do your tax return, and there are no losses in sweepstaking to report.
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One nice thing about online entries (at least here) No upfront costs! And no risk. Except for the dratted magazine subscriptions, but that can be fixed.
I know some people who do write-ins deduct stamps and supplies, but have never been sure exactly how that went down with the IRS, since I am too chicken to try it(and do not do that many write ins anymore).
 
tharedhead said:
I know some people who do write-ins deduct stamps and supplies, but have never been sure exactly how that went down with the IRS, since I am too chicken to try it(and do not do that many write ins anymore).
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From what I've read, they can't be deducted since sweepstaking is not a business; but one can always call up the IRS and ask their thoughts on it.
 
You will need a tax book for this year.. the one where you calculate your taxes... to estimate the increase. First look up your income.. what the tax would be on that.. then look up the total amount of your income plus your winnings, deduct what the taxes would be on just your income.. the difference is what the taxes will be on your winnings.
Since everones income tax bracket is different, this is really the only way you can estimate.. you may need to also do the standard deduction. Unless of course you are writing off the purchase of a computer to enter the sweepstakes you enter. I dont knwo if they still allow that, but its a supply, so is printer ink and a printer. Talk to a tax pro, HR Block would know!
 
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