Prize

[mkdsk102]

What is the name of your state (only U.S. law)? NY

How much federal taxes should I have withheld from a $50,000 cash prize. Also, how much state tax should I withhold? I live in Upstate NY.

 

[tranquility]

What will your taxable income be otherwise?

 

[mkdsk102]

What will your taxable income be otherwise?

just the $50000

 

[LdiJ]

just the $50000

You have no other income at all for the year? Are you single or married? Do you have dependents?

 

[Zigner]

Realistically, yours is not a legal question.

 

[tranquility]

If you are single and have no other income and use the standard deduction, using 2013 rates you would owe about $6000 federally and about $2000 state.

 

[davew128]

Realistically, yours is not a legal question.

I don't bother with stuff like this except from clients who pay for it. I wholly agree, I would not go to a legal forum to ask a tax accounting and planning question.

 

[mkdsk102]

If you are single and have no other income and use the standard deduction, using 2013 rates you would owe about $6000 federally and about $2000 state.

I am married and no children. I thought federal tax would be 25% and NY STATE tax would be 12%. Hope I am wrong.

 

[mkdsk102]

You have no other income at all for the year? Are you single or married? Do you have dependents?

I am married and no children.

 

[LdiJ]

I am married and no children. I thought federal tax would be 25% and NY STATE tax would be 12%. Hope I am wrong.

Tranquility already gave you the correct answer in post number 6.

However, to break it down for you federally:

The first 10,000 is not taxed at all
The next 8,925 is taxed at 10% = 895.50
The next 27,325 is taxed at 15% = 4098.75
The remaining 3750.00 is taxed at 25% = 937.50

Total: 5931.75 (or just under 6000.00)

I don't practice in NY so I am not going to break that one down for you. Just trust Tranquilities numbers.

 

[mkdsk102]

Tranquility already gave you the correct answer in post number 6.

However, to break it down for you federally:

The first 10,000 is not taxed at all
The next 8,925 is taxed at 10% = 895.50
The next 27,325 is taxed at 15% = 4098.75
The remaining 3750.00 is taxed at 25% = 937.50

Total: 5931.75 (or just under 6000.00)

I don't practice in NY so I am not going to break that one down for you. Just trust Tranquilities numbers.

WOW. Can't believe it is that low. Not sure why others are telling me 25% for federal tax. I can take the entire $50,000 and pay the taxes in April of 2015 if I want to ****************************...So if I tell them to with hold just $6000 for the federal tax I won't have to pay any federal taxes come income tax time?

 

[LdiJ]

WOW. Can't believe it is that low. Not sure why others are telling me 25% for federal tax. I can take the entire $50,000 and pay the taxes in April of 2015 if I want to ****************************...So if I tell them to with hold just $6000 for the federal tax I won't have to pay any federal taxes come income tax time?

Unless you are fibbing about not having any other income 6000.00 should do it. You will have to file a tax return but you shouldn't owe any further tax if 6000.00 is withheld. If you have other income then the calculation won't be valid.