Federal Taxes??

Reply #6

MrBobb — Fri, 11 Nov 2005 13:37:39 GMT

The following threads will provide some useful information: Planning On Winning A Jackpot? https://www.lotterypost.com/thread/122659.htm Lottery horror stories https://www.lotterypost.com/thread/121205.htm

Reply #5

NoCompLotto! — Fri, 11 Nov 2005 12:43:10 GMT

Basically, what happens is this:1. You Win. Start Screaming.2. You go to lottery HQ and fill out a claim.3. You now have a decision: a) You can take payments over a certain amount of time (i.e., MM, 26 years). With this option, you will pay taxes on EACH EVERY installment payment you receive, along with taxes on any interest you make by putting the money in the bank, plus regular employment income taxes, or b) You can take one lump sum. With this option, you are taxed on the cash value of the

Reply #4

NoCompLotto! — Fri, 11 Nov 2005 12:37:46 GMT

The only taxes deducted are Federal State (if your state taxes them). FICA Medicare are not deducted, since this is not money earned while working.

Reply #3

dearlord — Fri, 11 Nov 2005 12:13:09 GMT

You only have to pay taxes if you're earning money....now my question is...payments or annuity...do the taxes you pay if you win...does any of that go to FICA? or is all just income tax

Reply #2

glddgr — Fri, 11 Nov 2005 12:12:11 GMT

Thank you. So if I won, that would mean that I will still be in the high tax bracket every year until my money get low? I think I'm confusing myself. Were you saying that only the interest is taxed and not my total asset amount? I know a financial advisor would explain all of this to me but I haven't won anything, I'm just trying to get an insight on the lottery and how it works.

Reply #1

Raven62 — Fri, 11 Nov 2005 11:59:02 GMT

Federal Income TaxIf you take the Winnings in one lump sum you pay Tax when you receive it.If you put the Winnings after Taxes in the Bank, the Winnings earn Interest.You then pay Tax on the Interest each year.

Federal Taxes??

glddgr — Fri, 11 Nov 2005 11:35:54 GMT

Please don't think I'm stupid or naive but I have a question about lottery winnings and federal taxes. I know if you win the lottery and you take the annuity, you pay taxes on that every year that you recieve it. And I know you pay a tax payment before recieving your money with the lump sum. But my question is, if you win the jackpot and take the lump sum and quit your job are you still required to pay federal taxes every year? I feel kinda dumb asking this question. Please don't be to hard on m... [ More ]