Big Tax Hike on Lottery Winnings

Reply #12

Stack47 — Tue, 16 Jan 2018 21:56:51 GMT

Not sure if it's possible, but because of the huge decrease in corporate taxes, it might be worthwhile trying to claim as a corporation.

Reply #11

KY Floyd — Tue, 16 Jan 2018 04:08:07 GMT

If I win a big jackpot losing the state tax deduction will be meaningful, but it's pretty meaningless to me as things stand now.

What have you seen that's been dishonest or mean-spirited? A couple of decent articles will give you the gist, and I certainly haven't seen even a modest percentage of all the articles that have been written, but most of what I've seen has been straightforward coverage of what the changes are.

Reply #10

Think — Mon, 15 Jan 2018 21:35:49 GMT

I just looked and saw your location is NY now I understand why you are on this point.

Me, I have just been watching too much g*d d*mned mean spirited and dishonest mainstream media coverage of the topic and it p*ssed me off.

Reply #9

KY Floyd — Sun, 14 Jan 2018 05:55:53 GMT

Re-read my post.

The one where you said this, Anyone with even the slightest clue about AMT and the Pease Fine can easily sniff these threads out to be FAKE! before saying that neither applies to a big win? Why would you bring them up, then?

The OP certainly got the details wrong, but his general point is correct. There will be winners and losers, and a jackpot winner in a high tax state would be a big loser. It's pretty obvious that if Trump is being honest (not a bet I'd take), he doesn... [ More ]

Reply #8

Think — Sat, 13 Jan 2018 21:37:18 GMT

I never said either applied to the big jackpot winner! Re-read my post.

My point was that slanting stories to make all people believe they are screwed is self-serving NY/CA media propaganda.

I have seen so many crap stories about the tax cuts that I had to blow off steam.

BTW, Floyd, are you a tax professional

Reply #7

EdG1955 — Wed, 10 Jan 2018 22:15:52 GMT

KY Floyd: You're absolutely correct. Looks like there are about 13 states + DC with tax 6.566%.

Think: Think again. As KY Floyd pointed out, you're wrong. Also, I wasn't offering tax advice, just commenting on an side effect of the new tax law. Your comment was out of line.

Me: The best result for lottery winners in income tax states would have been the new lower top rate combined with a continuation of full deductibility for state taxes instead of the new 10K limit.

Reply #6

KY Floyd — Tue, 09 Jan 2018 21:09:54 GMT

Anyone with even the slightest clue about AMT and the Pease Fine ...

Anyone with a bit more than the slightest clue will know that they're almost entirely irrelevant to this particular discussion.

In terms of deductions for state and local tax the AMT is entirely irrelevant, because the AMT tax of 28% on the taxable income after disallowing those will be far less than the minimum effective federal rate. The worst case scenario for state and local taxes would be somebody who lives in NYC,... [ More ]

Reply #5

Think — Sun, 07 Jan 2018 19:15:10 GMT

That is just simply wrong!

None of the people on here are tax experts.

Anyone with even the slightest clue about AMT and the Pease Fine can easily sniff these threads out to be FAKE!

Read this - https://taxfoundation.org/state-and-local-tax-deduction-amt-pease/

and don't listen to all the amateurish analysis done on these forums by people who are clearly clueless!

If you win, get a tax attorney and don't listen to the idiotic slop on these forums.

All the fake... [ More ]

Reply #4

Slick Nick — Sun, 07 Jan 2018 13:22:51 GMT

Great point Zep, and I totally agree. If they complained, it would sheer GREED

Reply #3

zephbe — Sun, 07 Jan 2018 13:18:57 GMT

Hope I'm lucky enough to win even a small MM or PB jackpot--the taxes wouldn't cross my mind.

Never heard a jackpot winner complaining about the taxes either.

Reply #2

KY Floyd — Sun, 07 Jan 2018 07:34:38 GMT

if your state tax rate is 5.2%, you'll pay twice over for the Federal rate decrease.

Sounds like you may be confusing a tax deduction with a tax credit. Suppose you won a $100 million cash prize and paid a 5.2% state tax.

When you got a deduction for your state taxes you'd have paid $5.2 million to state taxes, and you'd have paid federal tax of 39.6% on the remaining $94.8 million, which is $37.541 million for a total tax bill of $42.741 million, for an effective federal rate of 37.541%.... [ More ]

Reply #1

music* — Sat, 06 Jan 2018 23:20:09 GMT

Lottery winnings here in California are not taxed by the State. I will discuss your info. with my tax accountant. Thank You.

Big Tax Hike on Lottery Winnings

EdG1955 — Sat, 06 Jan 2018 22:13:23 GMT

If you live in one of the 40 states with a state income tax, taxes on a big PowerBall or Megamillions win just increased dramatically. The reason is the new deductibility limit on state taxes under the 2018 tax law. Although the top Federal rate dropped 2.6%, state tax deductions are now limited to $10,000. So if your state tax rate is 5.2%, you'll pay twice over for the Federal rate decrease. As with all tax rewrites, there's some winners and some losers.