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Lottery Taxes

Topic closed. 78 replies. Last post 8 years ago by paulkbarnes.

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sirbrad's avatar - Lottery-062.jpg
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Posted: July 22, 2008, 8:07 pm - IP Logged

Hell,I gotta take a pass on what your books says.I don't own any "Sunday best" clothes.Do ya s'pose they'd let me wear cut off jeans and a carshow t-shirt?I cuss up a storm in mixed company and will probably let lose with a few choice words out of habit.Do ya s'pose they'll bleep out what I say?When they ask me what I'm going to do with all that money,I'll probably say something like "any damn thing I want,why the f*** do you ask?".Hell,if I act like my normal self I'll turn their required press conference upside down.I'll have enough money to pay any fine and/or fight any charges that might be filed against me for my language.Damn,I can't wait to win!Maybe my actions will force them to do away with press conferences and allow winners to remain anonymous.HyperDanceBananaHurray!

Well if that is how you want to remember your once in a lifetime big moment go ahead. You will also be attracting a lot more attention and many others will remember you even better as well. The media feeds off of negativity so you would be doing exactly what they want, and drawing more unnecessary attention on yourself.


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    Posted: July 22, 2008, 8:51 pm - IP Logged

    Well if that is how you want to remember your once in a lifetime big moment go ahead. You will also be attracting a lot more attention and many others will remember you even better as well. The media feeds off of negativity so you would be doing exactly what they want, and drawing more unnecessary attention on yourself.

    Well,I'd rather be myself than to act like a robot and do what "the book" says to do.Who wrote this book anyway....Miss Manners?.

      sirbrad's avatar - Lottery-062.jpg
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      Posted: July 22, 2008, 10:24 pm - IP Logged

      Well this "act" is a very logical thing to do if you want to keep others and more media at bay. Drawing more attention to yourself is a pretty stupid thing to do, and even a more security risk to you and your family. The goal is to be as boring as possible, put everyone to sleep, get out of there, and go and start enjoying life. Not to attract even more herds of people after you. "With great power comes great responsibility." But go ahead and knock yourself out if you want.

      The person that wrote the book is a very competent person who knows their stuff, and has obvious done A LOT of research. Such an important event needs to be taken seriously, and handled with grace and dignity as to avoid public embarrassment and potential regret. If dressing like a slob is how you want to remember such a momentous occasion, then go ahead. Although this makes one look as though they are not prepared to handle such wealth from the getgo, and look like an easy target.


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        Posted: July 22, 2008, 11:13 pm - IP Logged

        Well this "act" is a very logical thing to do if you want to keep others and more media at bay. Drawing more attention to yourself is a pretty stupid thing to do, and even a more security risk to you and your family. The goal is to be as boring as possible, put everyone to sleep, get out of there, and go and start enjoying life. Not to attract even more herds of people after you. "With great power comes great responsibility." But go ahead and knock yourself out if you want.

        The person that wrote the book is a very competent person who knows their stuff, and has obvious done A LOT of research. Such an important event needs to be taken seriously, and handled with grace and dignity as to avoid public embarrassment and potential regret. If dressing like a slob is how you want to remember such a momentous occasion, then go ahead. Although this makes one look as though they are not prepared to handle such wealth from the getgo, and look like an easy target.

        You go ahead and follow the books directions when you go to collect your millions if you win the lottery.And don't forget to take the book with you in case you forget how to act or what to say.

        I'll go collect my check as myself when I win.I don't need a book to tell me what to do.And I can pretty much figure what to say on my own.

        By the way,how many lotterys has the author of this book won?What makes him an expert on anything other than telling people how to dress and act?

          sirbrad's avatar - Lottery-062.jpg
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          Posted: July 23, 2008, 2:24 am - IP Logged

          You can do what you want, I am simply saying why create more unnecessary attention and act like an idiot? I already know how to "act" and speak very well, as I am a professional entertainer; so I do not need the book thanks. Also one need not be a jackpot winner to be educated properly, or teach all of the aspects involved with claiming a prize. Most of it is sound logical advice, but not to everyone.

          But I think since the author has a bachelor's degree in business administration, and a masters in public administration, and more; he probably knows a thing or two about these things. But if you want to dress like you normally do everyday that is fine. you will be easier to find. Figuring out what to say then is a little irresponsible and one should be prepared and well planned for such important statements. You could be held liable later on for any statements made.

          You obviously fail to see the importance of such an event, and are not adequately prepared for any jackpot win it seems. I would read up if I were you, otherwise it could all turn out to be a disaster. Let me know when it will be on TV though, should make great entertainment.

            Uff Da!'s avatar - InCelebration 001.jpg
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            Posted: July 23, 2008, 7:43 pm - IP Logged

            Informative thread, can someone shed some light on the dreadful "gift tax" for me.  How is it that they know what and who you gave money too.  Do they check withdrawls and deposits.  I heard its something like 10,000 or 13,000 is the max a gift can be then a tax has to be paid on it.  Is it just on cash or if I were to purchase things for someone else would the gift tax apply.  Thanks in advance

            The best source of information on the gift tax - and on the estate tax, too - is probably the IRS website.  You might want to check out this publication:

             

            http://www.irs.gov/pub/irs-pdf/p950.pdf

              CCHS13's avatar - chi jpeg.jpg
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              Posted: July 23, 2008, 8:06 pm - IP Logged

              Appreciate the response kloud9y2k and thanks for the link Uff Da!

              Men Lie Women Lie Numbers Dont

                sirbrad's avatar - Lottery-062.jpg
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                Posted: July 24, 2008, 3:07 am - IP Logged

                Also, are you taxed an additional 10% the next year on the original amount or the amount after the 25% deduction?

                  Uff Da!'s avatar - InCelebration 001.jpg
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                  Posted: July 24, 2008, 9:11 am - IP Logged

                  Sirbrad, please go back and read some of the explanations given to you above.  You are never taxed an additional 10%.  Your tax rate is based upon your total adjusted gross income less deductions and credits.  Perhaps the following chart will help you.

                  http://www.irs.gov/formspubs/article/0,,id=164272,00.html

                  With most investments you are not going to have withholding of estimated taxes at all.  (There are some exceptions, like when you make a withdrawal of money from an IRA.)  If a large portion of your income comes from a source where taxes aren't withheld in advance, you have to roughly calculate what your taxes should be and fill out an IRS estimated tax form each of the first three quarters of the year - and send in that amount with the form.  Then you'll fill out the complete income tax form at the end of the year and send any remaining amounts you owe to the IRS at that time.

                    pigsNtrees's avatar - pigsNtrees
                    Mallorn trees of Lothlorien
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                    Posted: July 28, 2008, 2:16 pm - IP Logged

                    Sirbrad, please go back and read some of the explanations given to you above.  You are never taxed an additional 10%.  Your tax rate is based upon your total adjusted gross income less deductions and credits.  Perhaps the following chart will help you.

                    http://www.irs.gov/formspubs/article/0,,id=164272,00.html

                    With most investments you are not going to have withholding of estimated taxes at all.  (There are some exceptions, like when you make a withdrawal of money from an IRA.)  If a large portion of your income comes from a source where taxes aren't withheld in advance, you have to roughly calculate what your taxes should be and fill out an IRS estimated tax form each of the first three quarters of the year - and send in that amount with the form.  Then you'll fill out the complete income tax form at the end of the year and send any remaining amounts you owe to the IRS at that time.

                    Thanks all for all the good info and entertaining reading.

                    Now I get the part where they take out 25% for taxes on your win. I get that after they take out the 25%, you only pay taxes on the money you earn from your winnings and not the original win.

                    Now here is where I get confused. This is from the link that Uff Da gave....

                    Schedule Y-1 — Married Filing Jointly or Qualifying Widow(er)

                    If taxable income is over $349,700

                    But not over--no limit

                    The tax is:$94,601.00 plus 35% of the amount over 349,700

                    I think this (35%) is for other money like salary, investments, interest on savings that they tax at this rate.

                    So tell me where I went wrong.Confused

                    Quando Porca Volare!

                    drunk hobbit

                      justxploring's avatar - villiarna
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                      Posted: July 28, 2008, 2:47 pm - IP Logged

                      This is the way I understand it:

                      If your taxable income (total salary, interest, lottery prizes, etc., less every possible deduction) is $549,700. Then you would pay $94,601 + an additional $70K ($200K x 35%)  = $164,601 total tax due 

                      That's approx 30% of your total taxable income.  Although I think it's fair, since they are still paying a lot more tax, this is why many people resent the wealthy getting a tax break.  Someone making $50,000 a year might end up paying the same percentage of his actual income as someone who makes $550,000, even more if he doesn't have a lot of deductions.

                      Whether you win the lottery or earn the money from a job, it doesn't matter.  It's still income.  The reason they take out 25% is that the IRS requires it (30% for non-residents) but you might end up paying a little more.  They don't take out 30%, because then it would get complicated.  They'd have to say "Okay, you made this amount, and you are married, so then it's $94,601 + 35% for you and you're single so it's $101,469 + 35%for you...."   They take out 25% even if you only win $10,000 if I'm not mistaken.  Yet, if you don't make any other income, at the end of the year, your tax brack will only be 10%, so you'll get a tax refund.

                        pigsNtrees's avatar - pigsNtrees
                        Mallorn trees of Lothlorien
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                        Posted: July 29, 2008, 5:40 pm - IP Logged

                        Thanks for the info.

                        Quando Porca Volare!

                        drunk hobbit

                          psykomo's avatar - animal shark.jpg

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                          Posted: July 30, 2008, 7:10 pm - IP Logged

                          Think of the lottery winnings of $1 million as an "extra weekly pay check". Taxes were withheld, you filed on or before April 15 the following year, and you either got a refund or paid what you owed. Your tax obligations on the $1 million are done just like your tax obligations on every other weekly pay check.

                          Thinking of...,,,,,,,,,,,<<<<<<<<<<<< "DON't WORRY"

                          YOU shouda WON the JACKPOT 2004 thru 2008>>>>>>>>>>>>>

                          THE DEMORAT's HAVE "promised" to ^^^^^^^^^^raise TAXE$$$

                          THEY "R" too LOW now>>>>>>>>>>>>>>>>>>>>THEY SAY!!!!!!!

                          STOP play'n those SILLY<<<<<<<"JACKPOT" >>>>GAME'$$$

                          LOL

                          PSYKOMO

                            AuntiePat's avatar - animaniacs10
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                            Posted: August 1, 2008, 3:49 am - IP Logged

                            So I will ask again, what if I have a million dollars just sitting in a non-interest bearing account or my own safe for years? Can I be taxed on it again and again?

                            NO

                              justxploring's avatar - villiarna
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                              Posted: August 1, 2008, 4:12 am - IP Logged

                              So I will ask again, what if I have a million dollars just sitting in a non-interest bearing account or my own safe for years? Can I be taxed on it again and again?

                               

                              As Auntie Pat wrote, the answer is "no."  You won't get taxed on money just because you have it in a safe or no interest checking account, but why would you want to do that? Although there are plenty of ways to invest where taxes are deferred (as long as you don't withdraw the interest) I don't understand why someone would be so concerned about paying taxes that he would lose interest or dividends on investments. Let's say you make $50,000 in interest one year and end up paying about $10,000 in taxes. You are still ahead by $40,000.