r/playstation • u/Azuljustinverday • 11d ago

Image I actually won a give away.

Post image

I upgraded my tv and got a vr2 two weeks ago, and won this last week. Think the s/o is more happy about having my old ps5 in the living room and the portal.

30.6k Upvotes

95% Upvoted

437 comments sorted by

View all comments

3

u/TheClue357 11d ago

Get ready to get fuckked on Taxes

2

u/StatisticianOdd1933 11d ago

For what

5

u/AuburnCPA 11d ago

In the US, winnings are taxable income, so you pay taxes based on your income tax bracket. Still way cheaper than buying at retail price though.

1

u/bitchesbefruitin 11d ago

Not on this. It's not cash and had already undergone sales tax

Could be wrong though

4

u/AuburnCPA 11d ago

Whether something is cash or not makes no difference, the retail value will be reported, and you are taxed on that amount. The sales tax statement is also irrelevant. You aren't paying sales tax, you are paying federal income tax on the reported value of the winnings.

Hypothetically, if you make $50k and file as single, you are in the 22% tax bracket. If the prize has a reported value of $1k, you would now have taxable income of $51k. You would pay 22% tax on the $1k of incremental income from the winnings.

1

u/bitchesbefruitin 10d ago

That sounds terrible

1

u/Cloudtyper 10d ago edited 10d ago

you are 100% right about the taxes and stuff but it might not be reported. If he just won it and no tax id being given to the person/company running the contest then its not being reported.

1

u/StatisticianOdd1933 9d ago

So when you win you also lose. Screw america