I accidentally called Federal Taxes fees. My bad. :)Prev Topic Next Topic

New Topic New Poll

Karen Nathan

Miami Florida
United States
Member #191,036
July 13, 2018
545 Posts
Offline

Dec 2, 2021, 6:42 am

So on YouTube, a Woman won $98,000 on a Slot Machine. I noticed that virtually none of the replies asked her how much she paid in Taxes. So I mentioned about a guy who had won about $126,000 and got $80,000 in take home Winnings and how Posters were disgusted and SHOCKED that $46,000 was taken out for Taxes. She replied,"I paid about $3,000 in Taxes." I mentioned how cheap her Taxes were compared to the guy who had $46,000 taken out for Taxes.

She replied something like,"Yep, my State Taxes are pretty cheap. Let's see what happens when I pay my Federal Taxes for next year for this win. Lol." Her reply made me realize that I have been accidentally calling Federal Taxes fees when I said,"Taxes and fees," when talking about Lottery Taxes and fees. My bad. 😀 So taxes(State Taxes) Fees(Federal Taxes).

I remember someone on here asking why I was saying,"Fees," and pointed out that "Fees," are what Scammers say when claiming stuff like,"You've won $10 Million in the Antarctica Lottery! Just pay $50,000 in processing Fees in order to get the $10 Million!" The reply to that was something like,"That's what I understood "Fees," were too. I also am confused on why Karen Nathan is saying,"Fees," when talking about Legitimate Lotteries."

"What's your ADDRESS?" May be the CREEPIEST question EVER asked to a Lottery Winner! O.O WTF?

At first, I found the one digit away draws kind of amusing, but now I am PISSED! 15 or 16 times I was off by just one digit in recent times!🤬 No longer find this amusing, it's making me REALLY angry now!🤬
Stack47

Kentucky
United States
Member #32,651
February 14, 2006
10,302 Posts
Offline

Dec 2, 2021, 3:56 pm

Quote: Originally posted by Karen Nathan on Dec 2, 2021
So on YouTube, a Woman won $98,000 on a Slot Machine. I noticed that virtually none of the replies asked her how much she paid in Taxes. So I mentioned about a guy who had won about $126,000 and got $80,000 in take home Winnings and how Posters were disgusted and SHOCKED that $46,000 was taken out for Taxes. She replied,"I paid about $3,000 in Taxes." I mentioned how cheap her Taxes were compared to the guy who had $46,000 taken out for Taxes.

She replied something like,"Yep, my State Taxes are pretty cheap. Let's see what happens when I pay my Federal Taxes for next year for this win. Lol." Her reply made me realize that I have been accidentally calling Federal Taxes fees when I said,"Taxes and fees," when talking about Lottery Taxes and fees. My bad. 😀 So taxes(State Taxes) Fees(Federal Taxes).

I remember someone on here asking why I was saying,"Fees," and pointed out that "Fees," are what Scammers say when claiming stuff like,"You've won $10 Million in the Antarctica Lottery! Just pay $50,000 in processing Fees in order to get the $10 Million!" The reply to that was something like,"That's what I understood "Fees," were too. I also am confused on why Karen Nathan is saying,"Fees," when talking about Legitimate Lotteries."

When I lived in Ohio I paid a $10 fee to collect $5000 after hitting the pick-4 straight. I had to get the bank manager to tell the teller to take the $10 out of the winnings because she wanted me to pay the fee up front. Couldn't blame the Ohio Lottery when the Teller was having a "bad hair day", but neither the teller or the manager were working at that bank next time I collected winnings.

FYI, 25% is deducted for Federal tax on winnings over $25,000. Florida has no state tax, but if you win in a state that does, they will deduct what ever the percentage is. USA MEGA has chart showing every state tax percentages.

"When will we ever learn?"
Karen Nathan

Miami Florida
United States
Member #191,036
July 13, 2018
545 Posts
Offline

Dec 2, 2021, 5:51 pm

Quote: Originally posted by Stack47 on Dec 2, 2021
When I lived in Ohio I paid a $10 fee to collect $5000 after hitting the pick-4 straight. I had to get the bank manager to tell the teller to take the $10 out of the winnings because she wanted me to pay the fee up front. Couldn't blame the Ohio Lottery when the Teller was having a "bad hair day", but neither the teller or the manager were working at that bank next time I collected winnings.

FYI, 25% is deducted for Federal tax on winnings over $25,000. Florida has no state tax, but if you win in a state that does, they will deduct what ever the percentage is. USA MEGA has chart showing every state tax percentages.

I'm confused. WHY were you collecting your $5,000 for a Pick 4 at a Bank? Shouldn't you have gotten the $5,000 from a Lottery Office? 🤔🧐 And then gotten $3,750 take home Winnings after the Federal Taxes and less if you have State Taxes?

"What's your ADDRESS?" May be the CREEPIEST question EVER asked to a Lottery Winner! O.O WTF?

At first, I found the one digit away draws kind of amusing, but now I am PISSED! 15 or 16 times I was off by just one digit in recent times!🤬 No longer find this amusing, it's making me REALLY angry now!🤬
ddude003

Missouri
United States
Member #208,879
August 9, 2020
330 Posts
Offline

Dec 2, 2021, 8:06 pm

I wonder how many States actually post something this straight forward on their Lottery Websites?

"Taxes
All Lottery winnings are subject to federal and state taxes. The Missouri Lottery is required to withhold 4% Missouri state tax on prizes of $600.01 or more, along with 24% federal tax for prizes of more than $5,000. Winners may owe additional taxes for the prize or they may receive a refund, depending on personal income."

The Missouri Lottery Website does...
Karen Nathan

Miami Florida
United States
Member #191,036
July 13, 2018
545 Posts
Offline

Dec 2, 2021, 8:34 pm

Quote: Originally posted by ddude003 on Dec 2, 2021
I wonder how many States actually post something this straight forward on their Lottery Websites?

"Taxes
All Lottery winnings are subject to federal and state taxes. The Missouri Lottery is required to withhold 4% Missouri state tax on prizes of $600.01 or more, along with 24% federal tax for prizes of more than $5,000. Winners may owe additional taxes for the prize or they may receive a refund, depending on personal income."

The Missouri Lottery Website does...

Hmm. So a $2500 ticket has a tax rate of 4 percent for a deduction of $100. Not bad. Still have $2400. 😀

"What's your ADDRESS?" May be the CREEPIEST question EVER asked to a Lottery Winner! O.O WTF?

At first, I found the one digit away draws kind of amusing, but now I am PISSED! 15 or 16 times I was off by just one digit in recent times!🤬 No longer find this amusing, it's making me REALLY angry now!🤬
DELotteryPlyr

Maryland
United States
Member #162,427
January 2, 2015
3,208 Posts
Offline

Dec 3, 2021, 10:16 am

Quote: Originally posted by Karen Nathan on Dec 2, 2021
I'm confused. WHY were you collecting your $5,000 for a Pick 4 at a Bank? Shouldn't you have gotten the $5,000 from a Lottery Office? 🤔🧐 And then gotten $3,750 take home Winnings after the Federal Taxes and less if you have State Taxes?

It sounds like a check cashing fee. So they got there winnings in a check and went to the bank to cash it.

Money WON is twice as good as money earned
Stack47

Kentucky
United States
Member #32,651
February 14, 2006
10,302 Posts
Offline

Dec 3, 2021, 1:25 pm

Quote: Originally posted by Karen Nathan on Dec 2, 2021
I'm confused. WHY were you collecting your $5,000 for a Pick 4 at a Bank? Shouldn't you have gotten the $5,000 from a Lottery Office? 🤔🧐 And then gotten $3,750 take home Winnings after the Federal Taxes and less if you have State Taxes?

In Ohio if the prize is between $600 and $5000, retailers will validate the ticket, fill out a W-2 and a form that the player gets motorized and then the player takes the form to a bank the authorized by the Ohio Lottery. Including driving, the process took about an hour. Ohio runs a player savvy lottery making it as easy as possible for players to collect winnings. For prizes over $5000, players go to a regional lottery office or to lottery headquarters where state and federal taxes will be deducted.

Sounds like you never cashed a lottery ticket valued over $600 and got a W-2G. I doubt any state lottery headquarters keeps cash on hand to pay winners over $5000 or can write them a check on the spot. Most states require checking for things like the player owing back child support and other legal stuff before issuing payment that usually takes up to six weeks.

Payments are not one size fits all so you should check your state lottery's website or call lottery headquarters before doing anything else.

"When will we ever learn?"
Stack47

Kentucky
United States
Member #32,651
February 14, 2006
10,302 Posts
Offline

Dec 3, 2021, 1:35 pm

Quote: Originally posted by DELotteryPlyr on Dec 3, 2021
It sounds like a check cashing fee. So they got there winnings in a check and went to the bank to cash it.

I believe they called the $10 charge a "bank processing fee" and was deducted regardless of taking cash or a check. The thing with the weird teller happened the first time I ever had a $5000 winning ticket and it was right after the Ohio Lottery began using banks to pay winnings over $600 and under $5001. Before that tickets had to be taken to a regional or state office and took six weeks to get a check.

"When will we ever learn?"
rdgrnr

100

The Hall Of The Mountain Kings Tennessee
United States
Member #73,902
April 28, 2009
15,378 Posts
Offline

Dec 3, 2021, 1:48 pm

Quote: Originally posted by Stack47 on Dec 2, 2021
When I lived in Ohio I paid a $10 fee to collect $5000 after hitting the pick-4 straight. I had to get the bank manager to tell the teller to take the $10 out of the winnings because she wanted me to pay the fee up front. Couldn't blame the Ohio Lottery when the Teller was having a "bad hair day", but neither the teller or the manager were working at that bank next time I collected winnings.

FYI, 25% is deducted for Federal tax on winnings over $25,000. Florida has no state tax, but if you win in a state that does, they will deduct what ever the percentage is. USA MEGA has chart showing every state tax percentages.

If you let a bank teller rip you off for 10 bucks or any other amount and you're too timid to say anything about it, well, you can't really blame anybody but yourself.

Better luck next time!

Hope your dream comes true and you get a really big one!
Artist77

United States
Member #121,739
January 16, 2012
8,849 Posts
Offline

Dec 3, 2021, 2:52 pm

Quote: Originally posted by rdgrnr on Dec 3, 2021
If you let a bank teller rip you off for 10 bucks or any other amount and you're too timid to say anything about it, well, you can't really blame anybody but yourself.

Better luck next time!

Hope your dream comes true and you get a really big one!

I agree. I am sure we all have cashed larger than normal checks at our banks. If a teller tried to charge me a fee, my accounts would no longer be in that bank.

Lottery players in particular should be wise about basic financial matters.

.
Speler

Belgium
Member #214,858
April 17, 2021
2,445 Posts
Offline

Dec 3, 2021, 4:36 pm

I use the paper forms and I pay cash. I calculate the payouts before going to the shop. So far I didn't need any gun to get the cash.
ddude003

Missouri
United States
Member #208,879
August 9, 2020
330 Posts
Offline

Dec 3, 2021, 8:07 pm

I can see a bank charging a fee for writing a bank draft, cashier's check or an outgoing ACH transfer... And I would walk away from any bank that would charge a fee for incoming monies deposits...
Stack47

Kentucky
United States
Member #32,651
February 14, 2006
10,302 Posts
Offline

Dec 3, 2021, 9:06 pm

Quote: Originally posted by Artist77 on Dec 3, 2021
I agree. I am sure we all have cashed larger than normal checks at our banks. If a teller tried to charge me a fee, my accounts would no longer be in that bank.

Lottery players in particular should be wise about basic financial matters.

.

You must have missed the part where I said "In Ohio if the prize is between $600 and $5000, retailers will validate the ticket, fill out a W-2 and a form that the player gets notarized and then the player takes the form to a bank the authorized by the Ohio Lottery". Oh and you apparently missed when I said "I believe they called the $10 charge a "bank processing fee" and was deducted regardless of taking cash or a check."

I was told the bank would charge the $10 processing when had the ticket validated. As I told DELotteryPlY, the thing with the weird teller happened the first time I ever had a $5000 winning ticket and it was right after the Ohio Lottery began using banks to pay winnings over $600 and under $5001.

Was charged a $10 fee cashing other winners but that was the only time a teller wanted me to pay $10 before getting the winning paid. The confusion was with the teller.

Yep, Lottery winners should understand the process before trying to cash a winning ticket. If how the Ohio Lottery pays winning under $5001 is still confusing you, check the the Ohio Lottery website.

"When will we ever learn?"
KY Floyd

NY
United States
Member #23,834
October 16, 2005
4,772 Posts
Offline

Dec 4, 2021, 3:16 am

"a form that the player gets motorized"

That sounds kind of expensive and unnecessary.
Karen Nathan

Miami Florida
United States
Member #191,036
July 13, 2018
545 Posts
Offline

Dec 4, 2021, 3:44 am

Until this thread, I was always under the impression that you just showed up to the Lottery Office with your winning ticket and they gave you a Claim Form. I had NO idea about getting notorized Forms from Banks until this Thread. But a guy on YouTube who won Lottery Winnings went to his Lottery Office with his winning ticket and filled out a Claim Form from them and he said he had to mail it and he got his check about six weeks later. I'm confused on why People would get notarized forms from their bank when they could just get the claim form from(Hey, it's an anagram, lol. 😉) when they could just get the claim form from the Lottery Office like the guy on YouTube did.

"What's your ADDRESS?" May be the CREEPIEST question EVER asked to a Lottery Winner! O.O WTF?

At first, I found the one digit away draws kind of amusing, but now I am PISSED! 15 or 16 times I was off by just one digit in recent times!🤬 No longer find this amusing, it's making me REALLY angry now!🤬

New Topic New Poll

Subscribe to this topic

I accidentally called Federal Taxes fees. My bad. :)Prev TopicNext Topic

I accidentally called Federal Taxes fees. My bad. :)Prev Topic Next Topic