Blogs

Raffle prizes, winnings and taxes – Part 2

How to figure the fair market value for tax reporting Last time, we looked at how to determine whether a raffle prize must be reported to the IRS. Now let’s look at some of the perhaps lesser-known or less-understood aspects of income tax law as it relates to raffle prizes, winnings and taxes. Backup withholding applies to raffle prizes, to the tune of 28% of the total proceeds, if the prize is otherwise subject to reporting (that is, the amount of

Blogs

Raffle prizes, winnings and taxes-part 1

Don't overlook the post-raffle details ... Sometimes it comes as a surprise to raffle organizers that the prize their organization is offering may be subject to federal (and possibly state and local) income taxes. The formula for calculating the amount of tax to pay, if any, may seem complicated, but it’s actually pretty straightforward.  This helpful guide will show you how to handle winnings and taxes. First of all, determine whether your organiz
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