Questions about tax!

Reply #9

BORGUSX — Mon, 11 May 2009 15:53:07 GMT

1.How about you win a money prize,but you have to pay to get the form faxed,are you tax on the money prize or the money prize minus the amount of the charge for faxing the form to claim the prize?

2.How about you are raising money for yourself from people's donation is that count as an income?

I know it is kind of count off topic from the lottery department,but at least it is still related to tax.

Reply #8

SpanaUnlimited — Mon, 11 May 2009 04:12:36 GMT

1. That varies depending on various issues. The only thing I can suggest is visit multiple professionals and then make a educated choice on the one you feel most comfortable with. Some professionals go by a flat rate. Others go by comission on the assets being managed.

2. Yep. The 25% withheld is only for the feds. Each state has a different amount that they withheld and charge. If you are lucky....there are some states that don't charge you income taxes. Must be nice to live in those states.... [ More ]

Reply #7

BORGUSX — Mon, 11 May 2009 03:59:59 GMT

1.How much would you be charged if you do hire someone to do your taxes and so on?

2.Is the 25% that you mention about the federal tax? So,is it federal tax plus state tax plus ten percent?

3.So,do you know which option allow you to maximizes your allowable deduction?

4.So,is it the more you deduct,the less tax you have to pay

Reply #6

SpanaUnlimited — Mon, 11 May 2009 02:01:04 GMT

1. The rational is the IRS doesn't want to encourage gambling. So that why they limit the deductions to amount that you win. For example if you lose $10,000 in lottery tickets and all you claim in winnings is $800. The government is not gonna subsidize the irresponsible loss of $10,000. The government will let you break-even by allowing you to claim losses up to the winnings. So in this example you can deduct the $800 of losses against the $800 of winnings

2. When filing you have two options.... [ More ]

Reply #5

BORGUSX — Mon, 11 May 2009 00:27:38 GMT

1.I always thought a deduction is something that is minus or in other words,an expense,but if you match your deduction with your winning,then huh? Winning is the opposite of deducting which I think it mean an expense.

2.Even thought technically you might be able to avoid taxes on $3,000 you won by claiming $3,000 in bad bets, that's still less than the standard deduction of $5,700 allowed a single taxpayer on 2009 returns. If you have no other deductions to itemize, it doesn't make sense... [ More ]

Reply #4

grandpajohn — Sun, 10 May 2009 23:54:06 GMT

It depends in what state you live in is how much tax you will pay.In Ohio for example where I live it is 25% federal and 6% state 31% total and also in the town I live in is a 1% income tax I would have to pay but in other towns in Ohio may not have a income tax so they wouldn't have to pay that.Some states don't have the state tax so they are just out of the 25%.

Reply #3

SpanaUnlimited — Sun, 10 May 2009 22:34:13 GMT

1. You are correct. The most you could deduct using gambling losses would be $20 since all you won was $20.

You can only count as much in losses as you won. So if you spent $100 on lottery tickets and won $75, you can only deduct $75. The other $25 is just part of the price of playing the game.

But make sure that this deduction, along with your other itemizations, is more than the standard amount. You always want to use the method that will provide you a bigger deduction.

Even thought

Reply #2

BORGUSX — Sun, 10 May 2009 22:10:29 GMT

1.So,if I won $20 USD for example,and lost $30 USD,then will my tax deduction will be $20 USD or what is the deal here?

2.Why do you have to pay quarterly in taxes,but not wait until April 15

Reply #1

SpanaUnlimited — Sun, 10 May 2009 21:45:33 GMT

1. 35% applies to the federal IRS taxes. The top bracket for federal purposes is above $375,000. Since most jackpots fall in this range....you have to pay the top rate. Keep in mind you don't have to pay the whole 35% right away. The lottery automatically withholds 25% of it before they even write you a check. So you are only responsible for the remaining 10% debt. The IRS also makes sure you pay that debt via estimated taxes which are due quarterly in the year they are incurred. So you can't ju... [ More ]

Questions about tax!

BORGUSX — Sun, 10 May 2009 20:16:12 GMT

1.When people talk about paying 35% of their winning in taxes,is that the federal or state taxes?

2.Does anyone have a tip in order to reduce their tax liability,besides telling them to get a financial advisor?

3.How about if your winning was less than $100 USD,does the IRS want you to file it and I heard something about that you get a tax deduction or something up to how much you won,can someone clarify this with an example,please