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Business & farm
As explained by @Mike9241 you only pay tax on your winnings based on your tax bracket.
If you are in the 15% tax bracket, then you will pay 15% on your winnings; $600 x 15% = $90.
If you are in the 25% tax bracket, then you will pay 25% on your winnings; $600 x 25% = $150.
Keep in mind that you may also be subject to state income tax, unless you live in a state that does not have state income tax.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
Also keep in mind the date of replies, as tax law changes.
‎October 28, 2023
8:36 AM
7,131 Views