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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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My daughter has a baby that has chronic lung disease. He was

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My daughter has a baby that has chronic lung disease. He was born prematurely at 25 weeks gestation, weighing only 1lb 6 oz. Her baby's aunt nominated her to win a car, to take Noah (the baby) to the doctor. They won the car. What will be the taxes to my daugher. She made 30,000 income for the year???
Hi and welcome to Just Answer!
Winnings are reported on form 1040 line 21 and are added to other income.
Tax liability is based on total income, filing status, deductions, etc.
You may find tax rate schedule on last page of this publication - http://www.irs.gov/pub/irs-pdf/i1040tt.pdf
Based on your information - your daughter most likely is in 15% tax bracket - means her additional tax liability on $22,000 is expected to be $22,000*15%=$3,300 plus Illinois state income tax $22,000*3%=$660.
However - your daughter will not be qualified for earned income credit. With $30,000 earned income - she was eligible for ~$900 earned income credit - not anymore because of additional $22,000 taxable income.
So her total estimated ADDITIONAL tax liability is $3,300+$660+$900=$4860.
Let me know if you need any help or clarification.
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