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Wayne Brasch
Wayne Brasch, Accountant and Business Consultant
Category: Tax
Satisfied Customers: 1298
Experience:  Master of Science in Taxation. Tax experience since 1963.
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If I got 550,000 dollars how much would federal taxes be ...

Customer Question

If I got 550,000 dollars how much would federal taxes be on it in Texas
Submitted: 9 years ago.
Category: Tax
Expert:  Wayne Brasch replied 9 years ago.
Would this money have come from inheriting it under someone's will? If so, it is not taxable at all for Federal or state income tax purposes. If it is a prize, it will be added to your other income and taxed probably at the maximum tax rate which is for 2006 35%. If this money comes by way of a gift to you, that also is not taxable income. If it is taxable, the tax only on that amount would be $192,500. As I said, though, your other income would be added to that before the tax was calculated.