What percent of your money is taken from taxes both federal and state when you win the lottery in NY?

Answer 1

In the US - winnings of any sort of lottery, gambling, raffle, contest, etc are taxable as ordinary income. You won INCOME from someplace...and that is what income tax is paid on.

You will actually pay at your marginal rate, which depends on the tax for the State you live in (and in NY can vary within the State, especially with NYC, etc) and is on top of the US Federal rate you'll pay. That Federal rate is somewhere between 15% for low income, to about 25% for modest and quickly becoming about 32-35% for higher incomes.

If the sweepstakes is a winning of over $600, they may withhold the tax from the payout, frequently at a 20% rate, albeit what is withheld is not what one actually pays.

Answer 2

Like most things, there is not an rate for that specific type of income...it is all much more broad: Gambling winnings are ordinary income. You will pay taxes at whatever rate is determined by your total taxable income. If you can itemize, gambling losses are 100% deductible up to the amount of winnings. Don't forget those lotto tickets

Answer 3

The federal required withholding amount would be 25% and you and the IRS will receive a copy if the form W2G with the amounts that will have to be reported on you federal income tax return.

The state tax withholding amounts for New York are 8.97 % state tax withholding, plus 3.648 % NYC residents, 0.897% Yonkers residents.

Gambling (lottery, casino, track, whatever) is taxed the same as any other income.

How much you pay ultimately depends on your own tax situation and tax rate - which varies person to person Federally and may in many States as well. 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, dependents, health expenses, busienss income or losss, other exemptions, et.

STATE income tax changes from stste to state and how long you stay and what you do in each state during a year may well determine if any tax is due. (And state income tax is a deduction to Federal taxable income, so that changes many things - consider that a 10% state rate is a deduction to federal income so if your federal tax rate was 35% on a $100 win in this instance you would pay $10 to State and only $31.50 (not $35) to the Fed because the state tax is a reduction of that $100 income).

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.