Arthur L. Rubin wrote:
- quote -

I assumed it was a stock unit. I doubt a prize system would
be customized.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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Thanks to you all for giving so much info.

regards
Ashok

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No. SS & medicare taxes are on wages and salaries,
not on other income.

Missy Doyle

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Ashok wrote:

- quote -

No, this type of income (prizes, awards, etc) is not subject
to employment taxes unless you are in the "business" of
entering such contests with a profit motive in mind.

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"Ashok" <kashokkumar[at]gmail.com> wrote:

- quote -

No. Those taxes only apply to EARNED income, not prizes.

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Ashok wrote:

- quote -

None of those you mention, but perhaps Texas might want you
to pay use (or sales) tax on it. Call some local Department
of Revenue office to check this.

ChEAr$,
Harlan Lunsford, EA n LA
Tue, 18 Jan 2005

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Frederick Jorden wrote:

- quote -

This is straying from tax matters, but wouldn't the FMV
for a computer depend on how what preloaded software is
installed?

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Apart from federal tax ( I know state tax is not there in
texas), will there be any other kind of taxes on this like
Social security, medicare etc?.

thanks
Asok

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Herb Smith wrote:
- quote -

For a good idea of FMV for a computer I would enter the
maker and model number in Pricegrabber.com. then print out
the list you get.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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Ashok wrote:

- quote -

Ordinary income tax (enter value of laptop on Line 21 -
Other Income). You are only required to report the Fair
Market Value, not the manufacturers suggested retail, so
look around for ads, etc to see what the actual "street
price" is for this computer. If you are sent a 1099-MISC
with some higher value, just file it away with your
documentation of value in case the IRS questions your
numbers.

As I'm sure you know, Texas has no income tax.

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I have won a laptop that is almost worth $1,500. I live in
Texas. What are the taxes that I will be incurring?. Please
let me know.

thanks
Kash

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