How much will you be taxed on 8000 lottery winning?

Answer 1

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.

Answer 2

This really depends on the state. Here in Colorado, you may or may not be eligible to NOT claim it, depending on your states minimum amounts you have won in the lotto in 2009. I know that once you get to a certain point after winning, you can keep your old losing tickets as a deduction, that counteract your winnings. I would look into your state lotto/lottery policies.

Answer 3

Nothing in Canada, but other countries like our nieghbours take just about half. Here u only get taxed on the interest you earn on the money in the bank.

Answer 4

Roughly 50% including state taxes. Some areas are less then others. To get down to this level, you may wish to talk with a planner on the matter.