Wisconsin Gift Tax- (tax on prize)

[random_jedi]

What is the name of your state? wi

i won a drum set with a value of around $7,000. how much, if the set cost exactly $7k, would the wisconsin gift tax be on it?

 

[abezon]

Not gift tax, income tax. You add $7,000 to your income tax return (line 21 on the 1040). I have no idea how much this will add to your tax bill, 'cause I don't know what tax bracket you're in, what deductions you can claim, what tax credits, etc. Same goes for WI. For useful help with this, go see the local HR Block with your 2002 return & as much info as you have about 2003 to date. Ask them to figure out if you owe anything & need to send in an estimated payment 1/15. There should be no charge for this -- it's slow right now & they hope you'll come back in the spring for the actual preparation.