how much would you owe on $11,000 on a 1099

how much tax do i owe on a 1099

WebTaxMan. Tax Accountant replied 8 years ago.

Hi geno,

This sounds like a prize or award and the IRS would treat it as part of your gross income. It is taxed at whatever your marginal tax rate is. I am just going to guess/make up that it is around 22%, so 11,000 * .22 = $2,420 in additional tax.

You just have to plug in what your actual marginal tax rate was from last year, assuming all else remained the same, and use that rate to figure the tax.

You can read more by clicking here

This an article from Bankrate.com entitled Free Trips will Cost you Money. It does a good job of explaining how this trip is taxed, much better than any IRS publication.

Also try their marginal tax rate calculators to find what yours is based on last years numbers, or this years numbers.

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Category: Taxes

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