how to reduce taxes on sweepstakes winnings
In states that permit it, creating a trust allows you to collect your winnings anonymously, which can avoid a lot of unsolicited attention from scammers and opportunistic long-lost friends and relatives. A well-designed trust can also allow for tax-free growth of assets, as well as reduce estate taxes for married couples. Enter the Prize Total Under Other Income Once you have the total FMV of all of your sweepstakes wins, enter the value on line 21 of your 1040 form, in the section called Other Income. Here are the IRS instructions on filling out the Other Income section of your 1040 form. Prizes and awards are mentioned on page 82. If your prize is large enough, you may end up paying the maximum income tax rate even if you choose to take your winnings in annual installments. However, if your income is low enough and your… There s a specialized capital gains tax rate that is lower than the standard tax applying to lottery prizes. Talking to an accountant or an investment consultant immediately after you ve won will help you come up with a strategy. This way, you ll reduce taxes and you ll also potentially maximize the prize through smart investment. If you re simply reporting your prize winnings to the IRS based on the ARV that the sweepstakes sponsor gives you, you may well be. But there s an easy way to ensure that you only pay what you owe in taxes and no more. The secret lies in knowing the difference between fair market value FMV and approximate retail value ARV . Almost all services offer free standard icons along with code to insert them. Alternatively, you can search for creative icons online at sites such as www.evohosting.co.uk blog web-development design more-free-social-media-icons and www.designsrock.com free-social-media-icons and create your own link, or use a social bookmark links generator, such as Keotag www.keotag.com sociable.php . The preceding story best represents the two variables that comprise asset value Suckage 5 A Subscription to Pay Yourself Last Well, if the circuits of the brain are governed by algorithms, as Granger and others in the field of computational neuroscience assert, do we humans really know anything? Or put another way, maybe we both know something. And certainly Watson is a breakthrough that has a lot to teach us. Kurzweil put it like this Those with the latest information learn what machines appreciate and what tangles them up. Images, for example, are useless. Most r sum scanners don t yet process them. And fancy fonts do nothing but confuse the machines, says Mona Abdel-Halim. She s the cofounder of Resunate. com, a job application tool. The safe ones, she says, are plain vanilla fonts, like Ariel and Courier. And forget about symbols such as arrows. They only confuse things, preventing the automatic systems from correctly parsing the information.