How much tax is paid for a $25,000 cash prize in California? ?

Question

Will it differ if its a car worth $25,000?

Answer 1

Gross Income includes all sources of income unless specially excluded under the Internal Revenue Code or State Code.  Cash or property in the amount of $25000 is treated exactly the same as gross income.  This income is to be added to all your other sources of income. There will be tax  owed for Federal and California purposes. The amount of tax will be variable depending on your other sources of income.  Less Itemized deductions, exemptions, etc.  in leading to taxable income.