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Native Floridian here, have questions on the taxes

Topic closed. 1 reply. Last post 8 years ago by KY Floyd.

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Central Florida
United States
Member #68580
December 25, 2008
2 Posts
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Posted: December 29, 2008, 11:33 am - IP Logged

Hi all!  This is my first post (although long time lurker).  I'm a life long Floridian (currently in Central Florida) and long time lottery player.  My biggest win to date is $100 from a scratch off.

I've got a question on the taxes that are paid from the taxable winnings.  This question is particularly for Florida, but I'm interested in how it is in different places too.  I've never really gotten a clear answer on this.  So let's take $100,000 just for an example.  The Florida Lottery web page FAQ says that the IRS requires the Florida Lottery to withhold 25 percent tax from prizes greater than $5,000, so if you win $100,000, $25,000 will be withheld, making your prize $75,000.  And what happens then?  Is that money added to your income for the year?

So if you make $100,000 per year and have no other income, you pay %25 taxes (married filing jointly)...but when you add your $75,000 in winnings, then you are taxed at %28?  I guess I'm confused on how all that works?  Thanks for any clarifications.

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    NY
    United States
    Member #23835
    October 16, 2005
    3474 Posts
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    Posted: December 29, 2008, 3:32 pm - IP Logged

    Taxes on lottery winings work exactly the same as taxes on other income. If you win a $100,000 prize you've won $100,000 regardless of how much is withheld for taxes. That means that if you earned 100k from other sources your total income is now 200k. You figure out your deductions, and  you owe taxes on the rest. Just as with the taxes your employer withholds, you may owe more or you may get a refund, depending on your individual situation.