Posted on 06/04/2019 5:16:43 PM PDT by yesthatjallen
Still not bad for a few days work.
Of course he will. Taxes on contest winnings are 50%. I’ve experienced it. (Not to his degree!)
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I think his winnings will be reported on a 1099-MISC (and not a W-2). Who knows if this it true?
Who knows WHY it matters? -In all likelihood this money is SELF-EMPLOYMENT income. So it is subject to SE tax - which means he will also owe Medicare tax (which is a component of SE tax)on the entire gross amount (he will get to deduct 1/2 of the SE tax though).
He will likely net less than 48% at end of it all.
WHAT A Country!!! Huh?
Has anyone ever seen the Lottery figures of earnings, expenses, and salaries?
The Government is the only business that doesn’t have to be audited and disclose their revenues and costs.
His last wager was defensive because he was behind - to where he would win if he guessed correctly and she guessed wrong but wagered nothing, or if she got it wrong and wagered a lot trying to beat him and he also got it wrong at the same time. They both got it correct and she wagered big - he could not have won if he had bet everything he had and doubled his score - so he did not throw the game.
Quite a scheme, isn’t it?
No, it will not be subject to self-employment tax.
I think you meant:
“Quite a scam” - either way, yeah, I don’t think this is what the founding fathers had in mind
No
There’s no need to succeed in America.....the IRS just screws you out of it!
Taxman and Welfare Cadillac, my two favorite protest songs.
That’s exactly what I said to my husband yesterday: I’ll bet the government takes half. Pure greed!
On horse races the state takes a cut of the parimutuel payout. Once the payout is divided among the winners the state taxes each individual winner.
JH would have lost even if EB would have gotten the answer wrong and bet nothing.
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