Legal Question in Tax Law in Massachusetts

If i win a contest on the internet and win a prize, Would their be any taxes that i would have to pay for winning a contest or recieving prize from online contest?

if i win $200.00 US dollars, What amount would i have to pay in taxes?

If i win a Ipod or something that not money, Would i still have to pay money? if so how much?

From what i am told, If i win several contest, i would have keep track of my winnings and report them at the end of the year which will will impact my overall gross income, if i win one contest in a year, Do i still have to report it?


Asked on 7/03/10, 7:58 pm

1 Answer from Attorneys

Your winnings are reportable and taxable, but for an amount of $200 there is no likelihood of any withholding. You should report the income and you will pay regular income taxes on it.

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Answered on 7/04/10, 1:45 pm


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