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Need Your Opinion Do You Think They Tax you again after you get the check

Topic closed. 12 replies. Last post 3 years ago by psykomo.

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Jani Norman's avatar - fiftyways
OHIO
United States
Member #4164
March 27, 2004
14586 Posts
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Posted: March 5, 2014, 10:00 pm - IP Logged

Pick 5 Winner in Cincinnati

Friday, January 25, 2013
CINCINNATI - A resident of Hamilton County won after playing the Ohio Lottery’s Pick 5 game. Ethel Martin won $50,417 for betting one dollar straight and boxed on 1-5-9-2-3 in the January 16, 2013 evening draw.
After mandatory federal and state taxes totaling 29 percent are withheld Martin receives a check for $35,796.
was wondering if they took out the 29 percent, gave you the check would you have to pay taxes again when you file again at the beginning of the year????????

"I am what I am by the grace of God."

Kitfany

http://www.ohiolottery.com/

    mightwin's avatar - questns

    United States
    Member #103786
    January 5, 2011
    486 Posts
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    Posted: March 5, 2014, 10:05 pm - IP Logged

    Depends on the person's income bracket.

      Avatar
      Baton Rouge, LA
      United States
      Member #4602
      May 7, 2004
      699 Posts
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      Posted: March 5, 2014, 10:12 pm - IP Logged

      In my state, Louisiana, the lottery will withhold 25% for federal income tax and 5% for state income tax. If the jackpot pushes the winner into a higher tax bracket, they'll most likely have to pay more taxes on the money they already receive through work or other sources, so it is possible to owe more even with the money held back from the jackpot.

      Prisoner Six

      "I am not a number, I am a free man!"

        maringoman's avatar - images q=tbn:ANd9GcTbRxpKQmOfcCoUqF2FyqIOAwDo7rg9G-lfJLAALPGWJWwiz19eRw
        Massachusetts
        United States
        Member #37433
        April 14, 2006
        2747 Posts
        Offline
        Posted: March 5, 2014, 10:18 pm - IP Logged

        Pick 5 Winner in Cincinnati

        Friday, January 25, 2013
        CINCINNATI - A resident of Hamilton County won after playing the Ohio Lottery’s Pick 5 game. Ethel Martin won $50,417 for betting one dollar straight and boxed on 1-5-9-2-3 in the January 16, 2013 evening draw.
        After mandatory federal and state taxes totaling 29 percent are withheld Martin receives a check for $35,796.
        was wondering if they took out the 29 percent, gave you the check would you have to pay taxes again when you file again at the beginning of the year????????

        2013 Tax Brackets (for taxes due April 15, 2014)

        Tax rateSingle filersMarried filing jointly or qualifying widow/widowerMarried filing separatelyHead of household
        10%Up to $8,925Up to $17,850Up to $8,925Up to $12,750
        15%$8,926 to $36,250$17,851 to $72,500$8,926 to $36,250$12,751 to $48,600
        25%$36,251 to $87,850$72,501 to $146,400$36,251 to $73,200$48,601 to $125,450
        28%$87,851 to $183,250$146,401 to $223,050$73,201 to $111,525$125,451 to $203,150
        33%$183,251 to $398,350$223,051 to $398,350$111,526 to $199,175$203,151 to $398,350
        35%$398,351 to $400,000$398,351 to $450,000$199,176 to $225,000$398,351 to $425,000
        39.6%$400,001 or more$450,001 or more$225,001 or more$425,001 or more



        Lets suppose Martin is a single filer and earns $35,000 a year. At this point his tax rate is 15%.  Now that he won $50,417 his income bracket moved from 15% to the upper tax bracket of 25% because his income is suddenly $85,417.

        25% of 85,417 = $22,354.25. If he has payed income taxes less than $22,354.25 during the whole of 2014 then he will owe IRS the difference. If he has payed more than $22,354.25 then he will get a refund of the difference. Correct me if I'm wrong 

        That money's gone fo ever

          Jill34786's avatar - Lottery-006.jpg
          Windermere, FL/Franklin, TN
          United States
          Member #50210
          March 1, 2007
          843 Posts
          Offline
          Posted: March 5, 2014, 10:41 pm - IP Logged

          2013 Tax Brackets (for taxes due April 15, 2014)

          Tax rateSingle filersMarried filing jointly or qualifying widow/widowerMarried filing separatelyHead of household
          10%Up to $8,925Up to $17,850Up to $8,925Up to $12,750
          15%$8,926 to $36,250$17,851 to $72,500$8,926 to $36,250$12,751 to $48,600
          25%$36,251 to $87,850$72,501 to $146,400$36,251 to $73,200$48,601 to $125,450
          28%$87,851 to $183,250$146,401 to $223,050$73,201 to $111,525$125,451 to $203,150
          33%$183,251 to $398,350$223,051 to $398,350$111,526 to $199,175$203,151 to $398,350
          35%$398,351 to $400,000$398,351 to $450,000$199,176 to $225,000$398,351 to $425,000
          39.6%$400,001 or more$450,001 or more$225,001 or more$425,001 or more



          Lets suppose Martin is a single filer and earns $35,000 a year. At this point his tax rate is 15%.  Now that he won $50,417 his income bracket moved from 15% to the upper tax bracket of 25% because his income is suddenly $85,417.

          25% of 85,417 = $22,354.25. If he has payed income taxes less than $22,354.25 during the whole of 2014 then he will owe IRS the difference. If he has payed more than $22,354.25 then he will get a refund of the difference. Correct me if I'm wrong 

          I will go with the assumption that Ethel Martin is single to be simplistic. Using a salary of 35k and the winning ticket of $50,417, her gross income would be $85,417 and the AGI(adjusted gross income) would most likely be substantially lower after deductions/exemptions but I will use the $85,417 for this example. 

          The 25% rate is applied from $36,251 to $85,417 incurring a tax of $12,291.50

          The 15% rate is applied from $8,926 to $36,250 incurring a tax of  $ 4,098.60

          The 10% rate is applied from 0- $8,925 incurring a tax of $892.50

          Total tax due would be $17,282.60

          The example above is hypothetical and in reality the tax liability would be much lower after deductions and exemptions are factored in.

          ** Some people fulfill their dreams by receiving entitlements from the Government while others wake up and work hard for it! **

            mikeintexas's avatar - tx avatar-1.gif
            Texas Panhandle
            United States
            Member #136843
            December 20, 2012
            1281 Posts
            Online
            Posted: March 5, 2014, 11:14 pm - IP Logged

            IF I ever win the lottery, I'm going to PM a few of the good folks on here to let them know of my good fortune, then I'm going to send a msg. to Jill and ask her how much she'd charge for financial advice.


            A people that elect corrupt politicians, impostors, thieves and traitors are not victims...but accomplices.
             - George Orwell

              savagegoose's avatar - ProfilePho
              adelaide sa
              Australia
              Member #37136
              April 11, 2006
              3300 Posts
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              Posted: March 6, 2014, 5:33 am - IP Logged

              to find the effective tax rate, divide the amount paid by the total earned

              <div_prefs id="div_prefs">

              2014 = -1016; 2015= -1409; 2016 JAN = -106; FEB= -81; MAR= -131; APR= - 87: MAY= -91; JUN= -39; JUL=-134; AUG= -124; SEP = -123; OCT= -84  NOV=- 73 TOT= -3498

              keno historic = -2291 ; 2015= -603; 2016= JAN=-32, FEB= +12 , MAR= -86, APR = -77. MAY= -48, JUN= -29, JUL=-71; AUG = -52; SEPT= -43; OCT = +56 NOV = -33 TOT= -3297

                Jill34786's avatar - Lottery-006.jpg
                Windermere, FL/Franklin, TN
                United States
                Member #50210
                March 1, 2007
                843 Posts
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                Posted: March 6, 2014, 6:29 am - IP Logged

                Pick 5 Winner in Cincinnati

                Friday, January 25, 2013
                CINCINNATI - A resident of Hamilton County won after playing the Ohio Lottery’s Pick 5 game. Ethel Martin won $50,417 for betting one dollar straight and boxed on 1-5-9-2-3 in the January 16, 2013 evening draw.
                After mandatory federal and state taxes totaling 29 percent are withheld Martin receives a check for $35,796.
                was wondering if they took out the 29 percent, gave you the check would you have to pay taxes again when you file again at the beginning of the year????????

                Without knowing her filing status or income it is impossible to determine whether Ethel will owe additional taxes. If she is employed and makes over $100k there is a good chance she may owe a little bit more in taxes, any income less than that and she would most likely receive a refund once deductions/exemptions/credits are factored.

                ** Some people fulfill their dreams by receiving entitlements from the Government while others wake up and work hard for it! **

                  Avatar

                  United States
                  Member #149820
                  December 9, 2013
                  644 Posts
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                  Posted: March 6, 2014, 7:19 am - IP Logged

                  Whether they did or not I'd still set some money aside for the "JUST IN CASE " scenario. Cause there are 2 things in this country that's inevitible DEATH and TAXES. And I believe it's actually easier to escape DEATH LOL

                    Avatar
                    Kentucky
                    United States
                    Member #32652
                    February 14, 2006
                    7318 Posts
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                    Posted: March 6, 2014, 10:24 am - IP Logged

                    Pick 5 Winner in Cincinnati

                    Friday, January 25, 2013
                    CINCINNATI - A resident of Hamilton County won after playing the Ohio Lottery’s Pick 5 game. Ethel Martin won $50,417 for betting one dollar straight and boxed on 1-5-9-2-3 in the January 16, 2013 evening draw.
                    After mandatory federal and state taxes totaling 29 percent are withheld Martin receives a check for $35,796.
                    was wondering if they took out the 29 percent, gave you the check would you have to pay taxes again when you file again at the beginning of the year????????

                    The Ohio tax rate was 5.5% in January 2013, they always withhold a flat 25% for prizes over $5000 so 30.5% should be withheld. Depending on other income, the 25% Federal tax withheld should cover those taxes. I'm not sure about the state tax because the rate changed to 5.75% in September 2013 and again it depends on other income and deductions.

                    If the $50,000 was her only income, the Federal tax is about $6000 for a single filer so she may even get a refund.

                      Drenick1's avatar - villiarna
                      USA
                      United States
                      Member #152799
                      February 25, 2014
                      1094 Posts
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                      Posted: March 6, 2014, 12:30 pm - IP Logged

                      Thank you for the breakdown Jill!

                        Artist77's avatar - batman14

                        United States
                        Member #121745
                        January 16, 2012
                        4795 Posts
                        Online
                        Posted: March 6, 2014, 5:04 pm - IP Logged

                        IF I ever win the lottery, I'm going to PM a few of the good folks on here to let them know of my good fortune, then I'm going to send a msg. to Jill and ask her how much she'd charge for financial advice.

                        Me too!

                        J'aime La France.

                          psykomo's avatar - animal shark.jpg

                          United States
                          Member #4877
                          May 30, 2004
                          5124 Posts
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                          Posted: March 11, 2014, 8:06 pm - IP Logged

                          The Ohio tax rate was 5.5% in January 2013, they always withhold a flat 25% for prizes over $5000 so 30.5% should be withheld. Depending on other income, the 25% Federal tax withheld should cover those taxes. I'm not sure about the state tax because the rate changed to 5.75% in September 2013 and again it depends on other income and deductions.

                          If the $50,000 was her only income, the Federal tax is about $6000 for a single filer so she may even get a refund.

                          STAK:

                          can Yo work out something simple??????????and post it 2D bottom line 2 explain!!!

                          It appear's UR an accountant therefore, U must be able 2 give us an EXAMPLE: ???!

                          (a) Ohio tax rate based on sum (b) something, depending on income?>>>>>>>!!!

                          thank U STAK:

                          U have served LP member'ssssssssssssssssssssssssssssssssssssssss>>>WELL!!!!

                          so she may git a refund>>>>>>>>>>>>>>>>>>>>>>>>>>>>THANK GOD!!!!!