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Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience:  GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
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what is tax due on a 100,000 prize

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Submitted: 10 years ago.
Category: Tax
Expert:  Ed Johnson replied 10 years ago.


This price will be withheld at 25% federal and state at 5.943%.

At the end of the year, you will pay total income tax based on your marginal rate, which for Federal could be as high as 35% and for state could be 7.5%.

At the end of the year, therefor, you may have to pay in if the withholding amount is not sufficient.