Sponsor says will withhold 25% for federal income tax; Is that towards my income tax? Let's say the prize car is $60k, 25% would be $15k; is that money being withheld for me to offset the winning price on my tax return? Will I still have to pay NYS tax on the $60k when I register? 8.625% is $5175. So this $60000 car out of my pocket after tax return should be about $ $20175? Am I right? Thank you!