Lottery and Taxes – A basic overview

This is a basic overview of the US Lottery and Taxes. There is absolutely no doubt about the fact that lottery taxes would be an uncomfortable face of winning million jackpot or some other costly prizes in the national and stage games. The winners get huge sums of money and even half of money could be taken by taxes. It is therefore important to understand the workings of US lottery and taxes so that you take very wise decisions in this regard. The assessment of US lottery and taxes are normally based on non-cash and cash prizes that are won through the means of legal gaming. These would include the national lottery game like the Powerball and Mega Millions as well as the cash prizes from casinos, contests, sweepstakes, raffles and scratch tickets.

Indeed any person who may be privileged to win a lottery must instantly hire the services of a expert public accountant or a trusted financial planner. It is important that you hire such a person to help you to take certain decisions. A number of people just have no thought as to how to decrease the burden of lottery tax as they acquire this new wealth. They just get involved with this newly found financial status and end up being broke in a very short time.

Indeed lottery winners have to give taxes whenever it is due. A lot would depend on the date and amount of money that is won. The taxes would be taken from the prize when the money is distributed or when winners may be necessary to pay annual or quarterly installments. It is important to note that when the tax installments would not be remitted when due the IRS assess interest, penalties and late fees. When combined these fines could be like thirty percent of all that is owed.

All winners of the lottery are responsible for the payment of federal and state taxes unless their state of residence is not into the collection of income tax. The payers of tax could pay averagely 45 to 50% of the entire prize amount. When it comes to US lottery and taxes the rate of lottery tax is would be based on the market value of the prize and the amount of pretax income of tax payers. When it comes to the winnings of jackpot lotto this puts the tax payers in a tax bracket that is higher and needs the filing of itemized returns as well.

Website: http://www.irs.gov/

Lottery and Taxes – A basic overview
4.33 (86.67%) 6 votes

16 Responses to “Lottery and Taxes – A basic overview”

  1. Ralkhar Bualteng says:

    I have been playing almost all the lotteries posted to my PC.So, I hope to win this time.

  2. Patricia P. King says:

    I would like to win, but it is a never ending to try
    it is always something else to do. I don’t get much
    social security to meet all my bills. I sure would
    love to get some money, I don’t need a lot, but it
    sure would be nice to win some. Thank you

  3. Annie says:

    Number are 8,12,25,31,34,49

  4. Logan says:

    The American Way.
    Liberty and Faith
    Deaf and Poor
    Lonely and Bored
    12 Prize OPPortunities
    including A “Win It ALL!”
    PRIZE.+ Lincon MKZ.
    God Bless

  5. Douglas says:

    Yes I will being notes that u pch would
    Want yes to contact? the IRS,tax (and if
    I win/on number (4900&3080&3577&3046&)
    And the numbers of(4650&5056&4950)
    And the numbers of(4749&4900&5165&4950)
    From Mr Douglas Butts of hood ca


  6. Carla M Antee says:

    Thanks for sharing

  7. Carla M Antee says:

    I really would Love To win

  8. Carla M Antee says:

    Thank you for sharing the following the information

  9. Carla M Antee says:

    I understand

  10. joncarlson says:

    1511west10thstfremontne68025joncarlson pay in cash or check new jersey or organ powerplaywinner

  11. Sherry says:

    Hope to win so I can pay off my debts and find a home of my own!!!

  12. Carla M Antee says:

    Thank you very much PCH!

  13. karen legault says:

    I play every day and I enjoy playing as well, I also pray that I win. I just do not ever have to worry about a roof over our head and food. Thanks for the opportunity PCH!!!!Karen Legault

  14. Carol Blackston says:

    I’m just sayin…….There is endless way I could help myself and many more in need. I receive my late husband’s retirement check, which barely get’s me through the month.I”m not allowed to work or able because of medical condition’s!!To win would be my light at the end of the tunnel!!So much to do !!!I’m alway’s happy to see the winner of any sweepstake or lottery,especially if they need it.It would be a woderful day if I win anything,I’m a giving person,I find myself with nothing to give?I’ve alway’s raising 2 Boy’s barley made it so I’m use to it,as I get older,i worry about my health!so Thank You for Giving,ever how it goes!

  15. pamela fletcher says:

    I have been paying close attention to all of the sweepstakes information that you have sent me, play a lot of the games and like everyone else playing, hoping they will win like myself. I want to wish everyone good luck on winning.

  16. leslie allebach says:

    Attractive article and well written. I just stumbled upon your blog and in fact loved your blog post. Anyway I’ll be subscribing to sweepstakes Newsletter and I wish you success. Thanks!

Leave a Reply