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Fed Tax On Lottery wins

Topic closed. 39 replies. Last post 4 years ago by Artist77.

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United States
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January 8, 2013
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Posted: January 8, 2013, 6:10 pm - IP Logged

Why is only 25% withheld in Fed Taxes when the top rate is 39.6%?


    United States
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    Posted: January 8, 2013, 6:21 pm - IP Logged

    Why is only 25% withheld in Fed Taxes when the top rate is 39.6%?

    I think its because they don't want to look and sound greedy.....

    Just write a check for the differance at the end of the year........

      whiteballz's avatar - Lottery-015.jpg
      Nutley, New Jersey
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      Posted: January 8, 2013, 6:22 pm - IP Logged

      Why is only 25% withheld in Fed Taxes when the top rate is 39.6%?

      don't give the IRS any new ideas....

      .


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        January 3, 2013
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        Posted: January 8, 2013, 6:24 pm - IP Logged

        Play and win Pick 3.  And go cash your ticket at the local 7-11...


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          Posted: January 8, 2013, 6:26 pm - IP Logged

          Maybe with deductions most people only end up paying 25%...............What?

            Artist77's avatar - batman14

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            Posted: January 8, 2013, 6:32 pm - IP Logged

            Why is only 25% withheld in Fed Taxes when the top rate is 39.6%?

            I think they take that amount out automatically before you get your money.  They you have to pay them the rest (or whatever amount of tax you owe after your charitable donations, etc).

            J'aime La France.

              maringoman's avatar - images q=tbn:ANd9GcTbRxpKQmOfcCoUqF2FyqIOAwDo7rg9G-lfJLAALPGWJWwiz19eRw
              Massachusetts
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              Posted: January 8, 2013, 6:37 pm - IP Logged

              The 25% is just withholding tax. Meaning there is a chance you might get most of it back depending on the deductions you claim. Usually though the lottery prize pushes you into income brackets of the wealthy who are taxed at 39% so you end up paying more taxes when filing your taxes.


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                Posted: January 8, 2013, 6:38 pm - IP Logged

                I think they take that amount out automatically before you get your money.  They you have to pay them the rest (or whatever amount of tax you owe after your charitable donations, etc).

                Right, you may not owe 25% and get a big fat refund.................

                  grwurston's avatar - Cute animals_Spider.jpg
                  Winning makes me smile.
                  bel air maryland
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                  Posted: January 8, 2013, 6:45 pm - IP Logged

                  Why is only 25% withheld in Fed Taxes when the top rate is 39.6%?

                  Welcome to the LP BayState,

                  If you click on the USA MEGA icon at the bottom of the quick links section on the left, then select the MM or PB FAQ'S, you

                  will get a lot of answers for your tax questions.  Good Luck!!!

                  "You can observe a lot just by watching." Yogi Berra, Hall of Fame baseball player.

                  The numbers will tell you what numbers to play. Pay attention to the numbers.

                  Don't just think outside the box, crush it.

                    helpmewin's avatar - dandy
                    u$a
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                    Posted: January 8, 2013, 6:46 pm - IP Logged

                    don't give the IRS any new ideas....

                                            animated smileys laughing 10

                    Let it Snow Snowman


                      United States
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                      Posted: January 8, 2013, 6:51 pm - IP Logged

                      Welcome to the LP BayState,

                      If you click on the USA MEGA icon at the bottom of the quick links section on the left, then select the MM or PB FAQ'S, you

                      will get a lot of answers for your tax questions.  Good Luck!!!

                      Good point..........................

                       www.usamega.com Patriot 


                        United States
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                        Posted: January 8, 2013, 6:52 pm - IP Logged

                                                animated smileys laughing 10

                                                           No Nod

                          Artist77's avatar - batman14

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                          Posted: January 8, 2013, 6:53 pm - IP Logged

                          Group Hug

                          J'aime La France.


                            United States
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                            Posted: January 8, 2013, 6:56 pm - IP Logged

                            Group Hug

                                   Lurking

                              Artist77's avatar - batman14

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                              Posted: January 8, 2013, 6:57 pm - IP Logged

                                     Lurking

                              awwwwww

                              J'aime La France.