Quote:
Originally Posted by markem
Don't know, Andy. My accountant has never asked if I had prize winnings (I haven't), so didn't know that there was such a category in the federal code. Have you had to pay a separate federal tax on prize winnings?
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I remember the IRS guy who won on Who Wants to be a Millionaire saying it was almost 50%.
I've heard from other people that prize money is taxed higher as it is a luxury. I've never won the lottery nor won on Jeopardy, so my statement is based on word of mouth alone.
