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Taxing your winnings

Tess Vigeland May 18, 2012
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American tax law would tax the fair market value -- not the retail value -- of this Porsche Carerra 911 that Maria Sharapova won at her income tax rate if she filed her taxes in the U.S. THOMAS KIENZLE/AFP/GettyImages

Taxing your winnings

Tess Vigeland May 18, 2012
American tax law would tax the fair market value -- not the retail value -- of this Porsche Carerra 911 that Maria Sharapova won at her income tax rate if she filed her taxes in the U.S. THOMAS KIENZLE/AFP/GettyImages
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Well here’s one thing you don’t want to forget if you’re lucky enough to win on a game show, or the lottery or any other random windfall — Uncle Sam WILL take his pound of flesh. Game show prizes in any form are taxable. But the specifics can get a little complicated. So we asked tax specialist Louis Barajas to break down tax law behind income from winnings.

Did you know that the amount of money you can win without having to report it on your taxes is different for horse race betting, slots and poker? If you win big, an accountant needs to be in your future. Take a listen by clicking the play button in the audio player above to learn more about these party-pooping tax laws.

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