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Lottery Taxes

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

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Kentucky
United States
Member #32652
February 14, 2006
7322 Posts
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Posted: August 1, 2008, 11:20 am - IP Logged

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

Had the taxes remained the same and had they continued to balance the spending budget, there would be no reason to consider raising them now. When they continued to spend more than they made after lowering the taxes, eventually the taxes will have to raised just to pay the interest. Hopefully it will be the other party raising the taxes while in control so they can use "lowering the taxes" to get back in control. Haven't the two parties been repeating that process for a number of years now?

For us lottery players, we just need to beat the millions to 1 odds when the jackpot is at its highest level, when the taxes are at the lowest levels, and live in a state with no state tax on lottery winnings.

Sounds easy to me!

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    New Member

    United States
    Member #50386
    March 5, 2007
    19 Posts
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    Posted: August 2, 2008, 9:17 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.

      sirbrad's avatar - Lottery-062.jpg
      PA
      United States
      Member #22983
      October 6, 2005
      2226 Posts
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      Posted: August 3, 2008, 3:45 am - IP Logged

      It was a hypothetical question just to see how long the greedy arm of the IRS is. Also one could live easily and not go through all the hassle that way of filing taxes. Especially if they have no family and millions of dollars that would be left over. Some people do not have beneficiaries, and want to use most of their money if possible, and do not care about getting more rich.

      I would invest in CD's before that however, as some interest is better than none. But if I have $200 million dollars in principle, I am not exactly going to lose sleep if I am not investing. But probably still would to support my businesses. Even at 5% that would be about $10 million the first year (pre-tax) and that would be entertaining.

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        dallas
        United States
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        August 3, 2008
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        Posted: August 3, 2008, 4:40 pm - IP Logged

        The 25% that they take out initially is just the start.  If you won $1M, you would be in the highest tax bracket.  (Currently 35%)  You will receive a 1099 form the following January or February stating the amount you won and how much was taken out for taxes.  You will file this with your 1040 form along with your W-2's from work.   The 25% actually covers your winnings up to about $300,000.  After that your tax rate goes up.  If you add your salary plus lottery winnings then subtract taxes taken out from your job and lottery proceeds, then you can roughly estimate how much more you will owe.  Remember,  that if you made that much money you will not be eligible to take all the deductions you may be used to taking if you made$50K or $75K, etc.  You simply don't qualify for the deductions that millions of middle or lower class taxpayers get. 

        Figure on paying another 10% roughly on everything over $300,000 total income.  If you are an average working class person with a medium or moderate income, you will owe another $70K give or take in this scenario. 

        You will NOT pay taxes on the original winnings after that first year when you file.  You will however pay taxes on any interest or dividends earned in subsequent years with whatever principle you invested. 

        If you won $1M and they took out 25%, you would walk out of the lottery office with $750,000.  Put $75,000 in a 3 mo, 6 mo, 1yr CD depending on how close it is to next April 15th.   This should cover you and you still have $675,000 to work with. 

        With this much money, you should always consult a tax or estate attorney before you claim the ticket.  You may be able to establish a trust, estate, or corporation and take advantage of tax laws to minimize how much the IRS gets.