1.I am not sure,so I ask. After the federal and state taxes on your lottery winning is already paid,does the IRS tax you anymore?
2.What do you think about taxes on lottery winnings? Even though,buying a lottery ticket is the same as a voluntary tax.
Related posts:
- How Much Of The Taxes Paid On A $10,000.00 Lottery Prize, Can My Mother Get Back? My Mother won $10k on a scratch ticket, and paid...
- Can I Deduct Federal Taxes Paid In 2007 On My State Tax Return? I made a mistake on my 2005 Federal taxes and...
- What Does This Tax Question Mean? If You Paid State & Local Income Taxes In 2007 For A Prior Year? “If you paid state and local income taxes in 2007...
- Our State Taxes Are Higher Than The Federal. Does Anyone Else Live In A State With High Taxes? We do not itemize our federal taxes. Still we pay...
- Can You Itemize Your State Taxes On Your Federal Tax Return? I hear so much about how you won’t have enough...
Related posts brought to you by Yet Another Related Posts Plugin.
10. February 2010 at 11:00 am
IRS charges tax on any winnings you have. Once. My state, California, doesn’t charge state income tax on California lottery winnings because players have already paid a 50% stupidity tax when they bought the ticket.
10. February 2010 at 11:00 am
The taxes withheld are based on the forms you fill out when you claim your winnings and are a “credit” towards your total taxes.
You should get a 1099 showing your winnings and taxes withheld.
You will list the information on your tax return and either get a refund or have to pay additional income taxes.
If your winnings are from a state lottery or similar gambling,keep a record of your ticket purchases and all winnings.
Keep all your losing tickets during the year,you can deduct the costs against your winnings up to the cost of the purchased tickets.
You then pay taxes on the winnings.
Lottery winnings is not earned income,but other income other than a non taxable income source.
10. February 2010 at 11:00 am
The amount withheld from what you get is just an estimate. At the end of the year you calculate your total tax, and if you didn’t pay in enough, you pay the rest.
Buying a lotto ticket is the same as a voluntary tax? Gee, I always thought it was taking a chance on winning a prize. If you consider it just a voluntary payment to the state, then don’t turn in the winning ticket to collect the prize, then you won’t owe ANY tax.
10. February 2010 at 11:00 am
The state and IRS withholds what they think you’ll owe for taxes on your winnings. When you calculate your taxes due at the end of the year, you include the amount you won as “income” and you include the amount they withheld as “taxes paid”. It all evens out. You’re not being double taxed.
10. February 2010 at 11:00 am
¿¿the IRS is the Federal tax…..wth!
Most states DON’T tax you on their State’s lottery winnings just the Gub ment do…..
Claiming lottery games are a tax is specious at best cuz they’re totally voluntary…..like smoking!
In Calif a pack of smokes is almost $6 !!! I dont smoke but I was stunned to learn that. Oh well, better them than me!
10. February 2010 at 11:00 am
They WITHHOLD an estimate amount from your winnings. Your final tax due is based on your total income for the year.