TAX DAY: Proof that calculating 35% federal taxes is wrong

Reply #5

joshuacloak — Tue, 19 Apr 2011 01:34:21 GMT

35% is for max rate their todd, with tax credits and tax deductions, if your a student or not/ etc all apply to tax rate

and i total agree with you on the get best tax lawyer you can.

but at the end of a day , if say someone won 100m cash in a large jackpot

if said person don't give a snip about donating money away , a winfall the irs wants it all.

but before i posted this, i Had restudy ways to tax avoid to point out some stuff i already knew and would like to share/reshare

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Reply #4

RJOh — Tue, 19 Apr 2011 01:21:54 GMT

Don't forget city income taxes. I noticed my city has added gambling and lottery winnings to its list of taxable incomes at 1.5%. That wasn't true in 2002 when I matched 5of6 in the Ohio Super Lotto for $1500.

Reply #3

dallascowboyfan — Tue, 19 Apr 2011 00:53:34 GMT

Thanks for the info Todd

Reply #2

ttech10 — Mon, 18 Apr 2011 23:31:59 GMT

Thanks for this. Usually I just look at Montana on the 'Jackpot Analysis' since they have a 10% tax which would move the witholdings to 35%. With the current Mega Millions JP that's an additional $800,000 that I could potentially have and $2.8m for Powerball.

Reply #1

Guru101 — Mon, 18 Apr 2011 21:38:37 GMT

That's good cuz I bought me a Decades of Dollars ticket. The payout is $250,000 a year for 30 years - $7,500,000. However the cash option is $4,000,000.

$4,000,000

- $1,000,000 (25% Federal Income Tax)

- $ 240,000 (6% Kentucky State Income Tax)

----------------------------------------------

$2,760,000

TAX DAY: Proof that calculating 35% federal taxes is wrong

Todd — Mon, 18 Apr 2011 20:55:05 GMT

So many people think they know-it-all when it comes to tax rates!

As we all know (or as we all SHOULD know), the lotteries withhold 25% federal taxes when you claim a jackpot. If you were to go to USA Mega's Mega Millions Jackpot Analysis or Powerball Jackpot Analysis, you would see the amount of money you would win after taxes are withheld.

Yes, it shows the correct 25% withholding, not 35% or 36% or whatever tax rate some people will chime in with.

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