I won 5,000 how much is the i.r.s going to take?

Question

I won 5,000 how much is the i.r.s going to take?

Answer 1

I think 25% for federal...and your state can vary.

Answer 2

i.r.s. wants everything

Answer 3

How much did you lose to win it? You can write off your gambling losses up to the winning amount. Unless they changed that this year....

Answer 4

in your place ,i will give them nada

Answer 5

depends on your tax bracket...

but probably about 25%....... then another 5% in sales tax...

Answer 6

the i.r.s would take like around 30% of it.

Answer 7

all of it. the man is always trying to get us.

Answer 8

just run man, or pretend you've lost them

Answer 9

Keep in mind that it may not be necessary for you to report all of the $5,000 as gambling winnings.  If you have incurred gambling losses at other times within the SAME year, then you may net the losses against your winnings.

The amount of the gambling winnings that the IRS will take is at the marginal tax rate the incremental income is taxed.  For example: if your marginal tax rate is 25%, meaning that the last dollar earned is being taxed at 25%, then you will be taxed $1,250 on $5,000 that is reported.  It would be slightly higher if a portion of your gambling winnings pushes your total taxable income falls into the 28% tax bracket.

Answer 10

You should never expect to keep more than half of anything you get for free. Then, if you get to keep more than half, you'll be pleasantly surprised. :)

Answer 11

That depends.  If you have verifiable losses of at least $5,000, you can deduct that $5,000 and the IRS won't get anything.  Any verifiable losses can be deducted up to the amount of winnings you have in a given year.  Unfortunately you cannot deduct losses if you have a negative gambling cash flow in a year.

Otherwise, you have to declare the 5 grand on your tax return as income.  Then you calculate your new taxes and pay the IRS it's share.

Answer 12

pretty close to 37% but it depends on what tax bracket you're in.

Answer 13

30% is a good rule of thumb...whether they actually keep that amount will depend on what tax bracket you are in and your win/loss statement, if you have one.