If I owe student loans can I collect lottery winnings?
If you get a job, is the federal government going to take your money from your paycheck? (I mean besides taxes.) Of course not. Money you receive is your money. You're only responsible to pay your taxes from those winnings. Do yourself a HUGE favor - DON'T buy any more scratch tickets! You could be one of the very few people in the whole world who could say they've actually MADE money from the lottery if you stop now. Here's something you should know: Lottery companies keep 50% of all money they take in! In other words, for every $100,000 the make from sales, they only pay out around $50,000 to winning tickets. (Like to lucky people like you who occasionally win something.) This 50% number WILL hold up in the long run. If you continue to play, you will eventually give back all that money. If you don't believe me, KEEP TRACK! On one side of a piece of paper write "spent", and on the other side write "won". You can start the "won" column with a nice big number - probably about $1,100 after taxes that you'll actually get. Every time you win more, add that to the $1,100. Every time you buy a ticket put that amount in the "spent" column. Eventually, you will see that your profit has disappeared. I really hope that you take my advice of NOT playing any more. If you don't, then at the very least keep track so that someday you'll see I was right about this. Congratulations on your win! Don't worry about the feds getting any of this money because of your student loans.
Do you have to pay taxes on lottery winnings if you donate the amount you owe the government and claim it?
No, donating 10% will not absolve you of paying taxes - the 10% is a deduction from your income. Say you win the $170 million which puts you in the 35% tax bracket. Now say they take 25% or $42.5 million off the top for taxes. Knowing that you are going to get hit another 10%, you donate $17 million (10% of the $170) to charity, making your taxable income $153 million. Tax on the $153 million will total $53.55 million. Since you already paid $42.5 million (the withheld 25%), you still owe another $11 million. So, in essence, you would pay $53.55 million in taxes and give away $17 million in charitable donations and walk away with $170 - 53.55 - 17 = $99.45m as opposed to just paying the 35% on the $170m which is $59.5m and walk away with $110.5 million.
Taxes on Lottery/Gambling winnings?
If you win less than $600. in my state, its not reportable- you don't have to fill out the back of the ticket, and the agent tears up the ticket when you cash it in. I've actually had times (in the far distant past!) that I've brought in $1,500. - $2,000. in one week, and this by only "investing" a total of $20., which was my weekly limit to play. No trace. Christmas was nice for a few years running. Now, when I won the 10 grand 10 years ago, the state and federal gov't took their "fair" share of 1/3 of the money, but due to my kids, I got it all back with my tax return. I do belive it's fair to tax the big winners. By big, I'm talking thousands, not a grand or less. My question about that is, how do you prove how much you spent each year to win that money? Save the tickets all year in shoeboxes?
Do I have to pay tax on $800 lottery winnings?
Your lottery winnings go on your federal tax return as "other income." If you are not a dependent, it appears you are in the 10% tax bracket, so you would pay an additional $80 in federal income tax. The state the conducted the lottery may or may not take taxes. If you pay taxes to another state, NY will give you a credit when you file your NY state income tax. You'll pay a few dollars tax to NY for your lottery winnings.
How much Tax do Lottery Winner pay?
Just wondering , so let say you won a lottery like mega millions or something and you get your money after the tax and everything. Then came tax time , so do you have to pay more or do they only look at your income and pay base on that. so bascially when you win lottery does your tax for each years goes up too? Thank You
Can a Foreigner in the Philippines still claim their winnings from the Philippine Mega or Super Lotto?
If a Pinoy US Immigrant vacationing or now living in the Philippines won a Philippine Lottery Jackpot, are they still entitled to the winnings? Does the same apply for Foreigners or Diplomats staying in the country that may win a lottery? I checked the PCSO website. The site is outdated since 2010 and lacks information on age restrictions and citizenship.
If I win the lottery, does my spouse have to be present with me to claim the winnings?
You go down and claim the winnings, and then go to the bank and open an account in only your name. If you live in a community property state, he is entitled to half. Then sit back and wait for the s*** t hit the fan and a divorce to come when the tax forms show up in the mail.
Is it true that if a foreigner wins the lottery in the USA they don't have to pay the USA’s taxes on lottery winnings?
While a person does not need to be a U.S. citizen or resident to play lotteries within the United States, foreign nationals are responsible for paying federal and state taxes on any net gambling winnings on a per-session basis.According to Publication 519 – U.S. Tax Guide for Aliens – “In general, nonresident aliens are subject to the 30% tax on the gross proceeds from gambling won in the United States if that income is not effectively connected with a U.S. trade or business and is not exempted by treaty. However, no tax is imposed on nonbusiness gambling income a nonresident alien wins playing blackjack, baccarat, craps, roulette, or big-6 wheel in the United States.”However, according to Artio Partners, foreign nationals from certain countries are exempt from tax withholding on gambling winnings due to the provisions of their tax treaties with the U.S.: Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland, France, Germany, Hungary, Iceland, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, Netherlands, Russia, Slovak Republic, Slovenia, South Africa, Spain, Sweden, Tunisia, Turkey, Ukraine, and United Kingdom.Foreign nationals from these countries should present Form W-8BEN – Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) – at the time of winning to claim the treaty benefits. If tax was already withheld on gambling winnings, foreign nationals should file Form 1040-NR – U.S. Nonresident Alien Income Tax Return – to reclaim any amount improperly withheld.
Do you have to pay taxes every year after winning the Powerball or Megamillion?
Separating this answer two ways to reflect different scenarios:SCENARIO ONE: You take the winnings as a LUMP SUM (not the advertised $200 million, paid over xx years - but as a one-time payment. Let’s pretend it’s $100 million.)a) You owe taxes on the $100 million in the year in which you receive the payout.b) In future years, you do NOT owe any taxes on the $100 million payout … but you will probably owe taxes on any EARNINGS off that money. Let’s say you invest most of the money - call it $90 million - in stocks, businesses or other assets. If those assets throw off income (stock dividends, capital gains from a mutual fund, etc.), you’ll owe taxes on those amounts. If some of those assets generate LOSSES, you can generally deduct those losses from the earnings to reduce your taxable income.SCENARIO TWO: You elect to take the payout over time (hint: This is probably a bad idea). Let’s pretend it’s a $200 million jackpot, payable over 30 years at $666,666 per year.a) In year one, you’ll owe taxes on the $666,666.b) In year two, you’ll owe taxes on the SECOND year’s payout of $666,666 - plus gain earnings or capital gains from investments you make with the first year’s payout.c) Lather, rinse, repeat over 30 years.That long time frame is one reason why you should probably take the lump sum (have the cash in hand now vs. the chance that you’ll die before collecting all of it, leaving your heirs to enjoy it). Second reason: If you’re prudent, you can probably invest it more effectively than the hyper-conservative annuities the lotteries invest in.As always, your circumstances may dictate otherwise, and CONSULT A TAX PROFESSIONAL WITH REAL QUESTIONS.