Depending on your other income and the amount of your winnings, your federal tax bracket can go as high as 39.6%. Your lottery winnings might also be subject to state income tax. So depending on where you live, your total tax bill could exceed 50%. You don't get any capital gains rate break for lottery winnings, nor is there any income averaging to help lower your tax bill. If you win more than $5,000 in the lottery, 28% must be withheld from your winnings for federal income tax purposes. You can do a Google search 'taxes on lottery' to get more info specific to your situation. 0% in Canada! YES
In US it would all be taxable as ordinary, that is any other income, and effectively be taxed at whatever your personal rate ends up being. That means it is taxed like any other income (albeit not subject to FICA). Many have tried to call it a capital gain or investment gain, but that has always lost in court. If you are a professional gambler, there may be other considerations.This is actually a very well decided area of tax laweverywhere.
(Remember Oprah audience...the entire value of the cars they were given was taxable...in fact the money they were then given to pay the tax on it was taxable). You do not have to declare winnings as income in Australia either. So because it is not classed as income no tax is paid on it.
How much you pay ultimately depends on your own tax situation and tax rate. There is no specific rate or category for income from types of gambling.
The withholding (like from a payroll, as an estimate of the tax) required at the casino is normally a minimum of 20%, but can depend again on your situation too. It is NOT the amount you pay...just a payment in advance to assure the amount you owe is paid.
Lottery and Gambling winnings are taxed like any other income.
That amount, or percent, of course changes with everyones personal situation, other income, expenses, deductions, exemptions, STATE (and state income tax is a deduction to Federal taxable income, so that changes many things), dependents, etc.
It is fair to say that 2 people, winning the same lottery would normally pay different amount of taxes.
Proveable losses are deductible against winning, so keep those losing lottery tickets!
Many people have tried to claim the winnings as Capital in nature, for the lower tax rate. The courts have denied that in each case.
If you are a professional gambler, the tax handling may change, as it is income from self employment...there are both good and bad aspects to this.
How much you pay ultimately depends on your own tax situation and tax rate. There is no specific rate or category for income from types of gambling.
The withholding (like from a payroll, as an estimate of the tax) required at the casino is normally a minimum of 20%, but can depend again on your situation too. It is NOT the amount you pay...just a payment in advance to assure the amount you owe is paid.
Lottery and Gambling winnings are taxed like any other income.
That amount, or percent, of course changes with everyones personal situation, other income, expenses, deductions, exemptions, STATE (and state income tax is a deduction to Federal taxable income, so that changes many things), dependents, etc.
It is fair to say that 2 people, winning the same lottery would normally pay different amount of taxes.
Proveable losses are deductible against winning, so keep those losing lottery tickets!
Many people have tried to claim the winnings as Capital in nature, for the lower tax rate. The courts have denied that in each case.
If you are a professional gambler, the tax handling may change, as it is income from self employment...there are both good and bad aspects to this.
Depends on where you live. Different states have different taxes. And Canada has different than the states too. I'im pretty shure you just hay whatever that taxes are, like when u go to buy something from the store, say 15%, then it would be 15%.
For individual US taxpayers 35% was the maximum percentage rate for amounts over 372,950 in the tax year 2009.
MFS the amount is 186,475.
The amounts below the above numbers go from 10% through 33% to reach the maximum 35% rate.
This depends on what country and what state you are in.
In the United States it is A LOT!
In Australia, you pay no taxes on lottery winnings. NOTHING!
If you post a question with your specific location someone can find out for you.
Lottery/Gambling winnings are included as income (1040 - Line 21) and are taxed at the same rate as your wages. However, if you itemize, you can deduct Lottery/Gambling losses up to the amount of your winnings (Schedule A - Line 28).
For more information read IRS Publication 525 - Taxable and Nontaxable Income
How much you pay ultimately depends on your own tax situation and tax rate. There is no specific rate or category for income from types of gambling.
The withholding (like from a payroll, as an estimate of the tax) required at the casino is normally a minimum of 20%, but can depend again on your situation too. It is NOT the amount you pay...just a payment in advance to assure the amount you owe is paid.
Lottery and Gambling winnings are taxed like any other income.
That amount, or percent, of course changes with everyones personal situation, other income, expenses, deductions, exemptions, STATE (and state income tax is a deduction to Federal taxable income, so that changes many things), dependents, etc.
It is fair to say that 2 people, winning the same lottery would normally pay different amount of taxes.
Proveable losses are deductible against winning, so keep those losing lottery tickets!
Many people have tried to claim the winnings as Capital in nature, for the lower tax rate. The courts have denied that in each case.
If you are a professional gambler, the tax handling may change, as it is income from self employment...there are both good and bad aspects to this.
If you win over a certain amount (i.e. $1 million), 25% of your winnings will automatically be withheld for tax purposes. The current highest tax bracket in the US is 35% for inidividual income that you would be subject to should your winnings place you in that bracket. They withhold the 25% then you pay the difference between that and the 35% later. Also you may have to pay a state income tax if your state has one.
75
taxes on lottery winning of 800,000 in the state of WA
Income tax.
Washington State does not have a personal income tax, so you will not pay any state income tax. You will still pay Federal income tax on lottery winnings, though.
what percentage of tax do I pay on 125,000?
If you don't want to be sued for tax evasion, even as a veteran, you would have to pay taxes on $50,000 in lottery winnings.
California does not tax have a state income tax on lottery winnings. The federal withholding rate amount is 25 % to be withheld from the winnings amount.
yes because it is a winning
no
No. Your lottery winnings will be reported on your 1040 federal income tax return and the taxable amount will be subject to the income tax at your marginal tax rate.
48%
if i earn £5000 a year what percentage of tax should i pay