*The Commerce Journal>>>United States Taxes

How much will my prize end up costing me due to the IRS?

I won a trip that is valued at $4000......does anyone know how I would go about finding out how much I will end up having to pay in taxes on this income?

That depends on your tax bracket. If you're in a 15% bracket where most taxpayers are, the tax on the trip will be $600, plus state tax if applicable.

Your marginal tax brackjet is what you'll use. For the middle class, that's about 25-28%. Plus state tax.

Figure on about $1300 in extra taxes because of the trip.

Or, you can voluntarily forfeit the trip and save the $1300.

It depends on what tax bracket you are in. You need to look at ALL of your gross income including the prize to determine your tax bracket.

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