Have you ever won a contest?
July 25, 2007 3:11am CST
Have you ever won a contest for a large prize or money? I have been told that you have to pay taxes on these prizes and was wondering if this was true or not. I won a jackpot of $500 at bingo and they told me that I had to add this to my taxes. Hugs
• United States
25 Jul 07
Are you a US citizen? If so, then probably yes to federal taxes. You will need to check with an accountant or some state 800 tax number to find out about state taxes. You probably owe them, too. Congratulations on winning that much money! I only win back what I paid in. Taxes are the reason I only try for cash prizes. I've heard of too many horror stories about people winning cars, houses, expensive trips and being in big trouble because they couldn't sell them in time and pay the taxes. So winning money is the way to go! Good for you.