How much money do you pay for taxes on winnings?

Answer 1

Lottery winning are the same as any other earning...and will be taxed federally and locally as any other income of that amount would be (which of course depends on many things, income level, number of dependents, number of deductions, etc.etc.)

As I recall, Florida doesn't have much of a State income tax, so your real consideration is Federal.

Gambling winnings are fully taxable and must be reported on your tax return. You must file Form 1040 and include all of your winnings. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair market value of prizes such as cars and trips. For additional information, refer to Publication 525, Taxable and Nontaxable Income. # A payer is required to issue you a Form W-2G if you receive certain gambling winnings or if you have any gambling winnings subject to Federal income tax withholding. All gambling winnings must be reported irrespective as to whether any portion thereof is subject to withholding. in addition, you may be required to pay an estimated tax on your gambling winnings. For information on withholding on gambling winnings, refer to Publication 505, Tax Withholding and Estimated Tax. You may deduct gambling losses only if you itemize deductions. Claim your gambling losses as a miscellaneous deduction on Form 1040, Schedule A (PDF). However, the amount of losses you deduct may not be more than the amount of gambling income you have reported on your return. It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. Refer to Publication 529, Miscellaneous Deductions, for more information.

Answer 2

In US it would all be taxable and effectively be taxed at whatever your rate on AGI 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 law everywhere.

(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).

Answer 3

They are added to your regular income, so genraally if small might not change tax bracket; but it might if large. So impossible to be precise. Check tax table. IRS.gov; i guess.

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 4

You are the only one that has all of the necessary information that will have to be reported on your 1040 FEDERAL income tax return for the year in order to do the calculation for the numbers that you are looking for.

After you complete your 1040 federal income tax return correctly to your TAXABLE INCOME and page 2 lines 43 and Line 44 you will know the amount of your income liability before any credits or other taxes.

Continue from Line 45 to the last lines at the bottom of the 1040 page 2 and then you will know how much taxes you will have to pay if any after you complete your 1040 income tax return correctly.

Answer 5

Winnings are like any other "ordinary income" (although provable losses are deductible against the winnings). You pay tax at your own personal effective rate, (different for everyone) after deductions, exemptions, other earnings, state taxes, etc.

The amount that may be withheld from your winnings at a casino or race track or such, is like any withholding, only an estimated amount of what you actually might pay at tax time.

Answer 6

how much tax you pay on 5000 florida scratchoff ticket

Answer 7

Yes you do.