How should my game show winnings be reported?
September 26, 2008
Date: 19 Jun 2008
I am a single part-time teacher in California. Normally I make $15,000/year. I just won $500,000 on a game show. I received a check with no taxes withheld.
Does this mean I don't owe any taxes? If not, what taxes should I expect to pay? Does FICA or self-employment tax apply?
Thank you so much for your attention.
Joe B. Lacosta
Date: 02 Jul 2008
Congratulations on winning $500,000!
Prizes are subject to income taxes, but not employment taxes like FICA or self-employment taxes.
A tax advisor can help you estimate your tax liabilities. That's our business!
Consider prepaying most of your California tax to get a current deduction against your federal income tax.
You also should be getting investment advice to preserve your new nest egg.
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