|Posted: November 26, 2010, 1:53 pm - IP Logged|
Thanks everyone! Why would they tell me to forget about it if I dont usualy itemize my deductions? Now I have a reason to lol
Since i don't know your tax situation married / single / filing status whether you own or rent. What your base income is. I cant answer all your questions but basically if you are buying a home or are married filing jointly then most people will itimise deductions. And a lottery win falls in the catagory of deductions you are entitled to.
If you are single filing a short form have no deductions then the tax preparer has nothing to enter for your deductions. It may not be beneficial to you to claim your winning unless it can offset what you owe.
I am not a tax man so i don't know everything but have through experiance delt with a several lottery wins where i filed for a return. And if i wasn't filing the long form the tax man said to forget about it. Not worth the hassle.
When you win uncle sam wants his cut since you won money it's called unearned income, income which is reported and you owe taxes on. The taxable amount is what the win was worth and what you received after they got their cut. Ironic isn't it, may as well not won anything since the government wants almost half of it.
Buy hey for a 1 buck investment it's still a good deal. Enjoy your holiday with your extra cash.
Big John says. You don't hit the number. The number hits you!!!!
I'm not Big John, I'm Four4me, Big John's a friend.