Originally Posted by cordelli
I once won a mickey mouse tote bag from disney in a stupid sweepstakes, they actually 1099'd me for the $15 value of the bag, and it was enough to bounce me into the next tax level, so I had to pay an additional $18 in tax. I still have the bag someplace.
I guess I cant understand how that is possible. The US Tax system is progressive. So if it bumped you into a higher bracket, then it would only cost you an elevated rate on the $15 or whatever part of it was in the next bracket. There would be no way to pay $18 income tax on $15 worth of income. You would have paid 31% on 15 bucks instead of 28% on $15.
Ken in Phx
Last edited by Ken in Phx; Jan 10, 2005 at 8:51 am