paying taxes

Reply #12

haymaker — Wed, 06 Jul 2011 19:41:27 GMT

in 3rd paragraph there may be additional tax liability

Reply #11

haymaker — Wed, 06 Jul 2011 19:38:06 GMT

b$rizzle, why does the state w/hold, if theres no state tax,wheres the $ go

Reply #10

redhot7 — Wed, 06 Jul 2011 19:35:00 GMT

I don't know but this is what they say, extracted from California Winner Handbook:

Lottery prizes are exempt from California state and local personal income taxes. However, the Internal Revenue Service (IRS) requires the California Lottery to withhold taxes from prizes over $5,000 for U.S. citizens and resident aliens who provide social security numbers on the Lottery Claim Form. The IRS also requires the Lottery to withhold additional taxes from all prizes of $600 to $5,000 from U.S. citizen... [ More ]

Reply #9

B$Rizzle — Wed, 06 Jul 2011 19:33:03 GMT

Very true

Reply #8

haymaker — Wed, 06 Jul 2011 19:31:54 GMT

i believe 25% is just the w/holding you could end up owing more when you file the next april 15.

Reply #7

B$Rizzle — Wed, 06 Jul 2011 19:31:19 GMT

Anything over $599 and up to $250,000 here in FL, has to be claimed at the district office. Anything over $599, the district office will provide a W2-G form for tax reporting.

Also in FL, anything under $5,000 is not deducted at the time of claiming. So, say you win $5,000, the district office will provide a check for that amount = $5,000.

If you win $10,000 for example, the district office will give you a check for $7,500 since FL witholds 25% on winnings, with no state tax.

Reply #6

redhot7 — Wed, 06 Jul 2011 19:14:26 GMT

25% flat Fed Tax. No state income taxes for lottery winning for the state of California. Your state lottery may withhold taxes immediately and cut the amount when issuing the check. If you owe back taxes, child support, the amount you owe to the government may be deducted from your winning ticket too.

Reply #5

haymaker — Wed, 06 Jul 2011 18:01:51 GMT

in jersey we no longer have to sign the back of ticket on small wins.i guess they dropped the rule cause they never asked for i.d. and nobody took it seriously and would sign the name of someone famous,like george washinton,bill clinton etc.

Reply #4

Stack47 — Wed, 06 Jul 2011 17:52:56 GMT

You have to declare all income, including all gambling wins on your US tax return.

Only if you're a professional gambler. Casual gamblers like the majority of us don't have to declare a $7 or $10 win as income.

Reply #3

Stack47 — Wed, 06 Jul 2011 17:47:32 GMT

I thought $599 was the limit until I moved to Kentucky. The pick-3 pays $600 for a straight and you're not issued a W-2. I guess the reason is they deduct the $1 wager they kept making the win $599.

There are pros and cons on declaring multiple winnings on one hit when each hit is under $600, the total it over $600, and no W-2 is issued. I guess it depends on if you sign the back of the tickets because without names it would look like multiple winners to the Lottery and the IRS.

and on t... [ More ]

Reply #2

Mario38 — Wed, 06 Jul 2011 14:17:37 GMT

You have to declare all income, including all gambling wins on your US tax return. How much tax you pay will depend upon your total income and deductions. You can declare gambling loses as a deduction, but any gambling loses that exceed your gambling wins do not count towards reducing other income.

Hope this helps.

Reply #1

Raven62 — Wed, 06 Jul 2011 14:15:58 GMT

You Pay Tax for the Year: On Every Dollar Won Above the Amount You Lost!

If you Won $500 and Lost $600: No Tax!

If you Won $600 and Lost $500: $100 is Taxable

paying taxes

janie47 — Wed, 06 Jul 2011 14:02:12 GMT

how much can you win playing the lottery before you have to pay taxes on ?

hope this question is ok

and on the online games is it the same taxes