I use a fairly popular food delivery service that recently in my city has had a contest recently where the prize is $25 dollars off any order for 365 orders (which I have confirmed). The estimated ARV being $9,125. Since all contest winnings are taxable by the US Gov't, I know I will have to write this down around tax season. I looked a bit into this, but since I am regrettably not well versed in tax law, I just want some help seeing what I need to look forward to come tax season, and if accepting the prize is worth it. I do have to pay it as a lump sum for the year, I have asked.
I make about $21-25K a year (part time college student). If I'm correct with how I understood the tax laws, I'd be looking to pay about 15% which totals to $1,368 and change, on top of federal and state taxes (which should be putting me at $2,000+)
Just looking for any overall advice and guidance before I submit the form to officially accept the prize, to see if its worth it. I mean on one had, free food that I don't have to worry about. On the other hand, if I'm not understanding any of this correctly, I may be shooting myself in the foot financially.
Help a dude out?
Submitted July 25, 2017 at 03:03PM by VulcanRyu07 http://ift.tt/2eLFNPy
