Hot Lotto

Reply #3

mathhead — Sun, 26 May 2013 00:42:53 GMT

Errata.... I did not get a chance to make the following changes before the edit window closed. I should have written....

So your total incremental federal tax would be $3,331,680, of which the lottery paid $2,103,333.

But to reiterate, that is only a rough estimate. Your actual total incremental federal tax might be lower due to deductions and credits. And don't forget: your incremental federal tax might be higher due to tax on any interest or realized investment gains of the $6,310,000 th... [ More ]

Reply #2

mathhead — Sun, 26 May 2013 00:15:07 GMT

It does not say it is tax free . It says the Hot Lotto lottery pays the (federal?) withholding tax.

(I have not looked to see if any state taxes lottery wins; my state does not. If your state does, I don't know if the Hot Lotto lottery would pay the state withholding.)

As you should know if you work, withholding is merely an estimated tax payment. Your actual tax might be higher or lower, depending on your individual circumstances. Generally, you cannot know until you file your tax return... [ More ]

Reply #1

butch2030 — Sun, 26 May 2013 00:13:38 GMT

To my understanding, they will pay your taxes for you using your SSN if you win the Grand Prize. They will only pay taxes (State Federal) on the money for the Grand Prize ONLY . Any other taxes you may owe is your problem. In short, if you didn't Win the Grand Prize, you are responsible for any taxes on any other prizes you may have won.

MN Hot Lotto

Starting May 12, 2013, Hot Lotto goes ALL CASH and TAXES PAID (25% Federal, 7.25% State withholding

Hot Lotto

ALLboutMONEY — Sat, 25 May 2013 23:18:06 GMT

SO..........HOT LOTTO states grand prize paid tax free . If someone wins the grand prize, would they not STILL be obligated to pay federal taxes ? Can a tax attorney or accountant please answer ? I can not imagine that the IRS would allow you to collect the winnings and NOT pay federal taxes. Help me understand, please.