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Question about taxes on winning a $50k eliminator contest
Posted on 9/16/13 at 10:09 am
Posted on 9/16/13 at 10:09 am
I'm in a large contest with hundreds of entries that could bring the pot to nearly 50k assuming there's only one winner. I probably won't win it but I was just curious as to what the process would be if someone would win that much money and an estimate on what the taxes would be.
Not sure if this is relevant info or not but the contest is organized by a friend, so it's not through a major gambling organization or anything like that.
Not sure if this is relevant info or not but the contest is organized by a friend, so it's not through a major gambling organization or anything like that.
4
Posted on 9/16/13 at 10:12 am to Delacroix
Assuming you get paid in cash, I would not worry about it.
But, that's me, and I am not versed in tax law.
And good luck!
But, that's me, and I am not versed in tax law.
And good luck!
This post was edited on 9/16/13 at 10:13 am
Posted on 9/16/13 at 11:01 am to Delacroix
I'd imagine the $50,000 would be added as taxable income for the year in the simplest example, so if you made $50,000 at your job and won the contest, your taxable income for the year would be $100,000. You'd then pay the tax rate as if you earned that much this year.
Taxes are fun.
Someone correct or expand upon the above please.
Taxes are fun.
Someone correct or expand upon the above please.
Posted on 9/16/13 at 3:16 pm to Delacroix
These are the results of $20 a entry, CFB Bowl Game pool I participate in. Nobody ever receives a 1099, so no one reports it. 17-5 usually wins, if you win the tie breaker. We also have a March Madness with fewer players.
Another year's contest is over and the results are in:
1st Place: Ken Hawk $10,188.00 (60% of the pot)
2nd Place: Alex Kapres $3,396.00 (20% of the pot)
3rd Place: Billy Hargett $1,698.00 (10% of the pot)
4th Place: Michael Uilkie $1,018.80 (6% of the pot)
5th Place: Brett Henry $679.20 (4% of the pot)
CONGRATS, guys!!!
Another year's contest is over and the results are in:
1st Place: Ken Hawk $10,188.00 (60% of the pot)
2nd Place: Alex Kapres $3,396.00 (20% of the pot)
3rd Place: Billy Hargett $1,698.00 (10% of the pot)
4th Place: Michael Uilkie $1,018.80 (6% of the pot)
5th Place: Brett Henry $679.20 (4% of the pot)
CONGRATS, guys!!!
Posted on 9/16/13 at 4:49 pm to Delacroix
quote:You owe taxes on it as income.
I'm in a large contest with hundreds of entries that could bring the pot to nearly 50k assuming there's only one winner. I probably won't win it but I was just curious as to what the process would be if someone would win that much money and an estimate on what the taxes would be.
quote:
Not sure if this is relevant info or not but the contest is organized by a friend, so it's not through a major gambling organization or anything like that.
If the contest is not legal, the 5th amendment gives you the right to not claim the income - however, you must positively assert it - that is, you must inform the IRS you have unreported income but you are not reporting it based on your rights under the 5th amendment.
If you simply do not report it, you are a tax cheat.
EDIT- upon further investigation I've found out you still need to report the income, but if the source is illegal you can assert the 5th amendment and not reveal the source.
LINK
This post was edited on 9/17/13 at 6:28 am
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