What percentage of tax do you have to pay on a large lottery win?

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Taxes on Large Lottery Winnings Depending on your other income and the amount of your winnings, your federal tax bracket can go as high as 39.6%. Your lottery winnings might also be subject to state income tax. So depending on where you live, your total tax bill could exceed 50%. You don't get any capital gains rate break for lottery winnings, nor is there any income averaging to help lower your tax bill. If you win more than $5,000 in the lottery, 28% must be withheld from your winnings for federal income tax purposes. You can do a google search 'taxes on lottery' to get more info specific to your situation. 0% in Canada! YES
In US it would all be taxable as ordinary, that is any other income, and effectively be taxed at whatever your personal rate 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: You do not have to declare winnings as income in Australia either. So because it is not classed as income no tax is paid on it.
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What percentage of tax is taken on lottery or gambling winnings?

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 fr

What percentage of taxes are withheld from Illinois lottery winnings?

The state of Illinois withholds 3% of any payment over $1000 for state taxes. For federal taxes, if the payee is a citizen or resident alien, 25% of prizes over $5000 are w

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Depends on where you live. Different states have different taxes . And Canada has different than the states too. I'im pretty shure you just hay whatever that taxes are, like

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Yes. The full amount of your (Lottery) gambling winnings for the year must be reported on line 21 other income of the IRS Form 1040 page 1. The amount will be added to all of

Do you pay tax on a lottery win in the UK?

Not directly. You receive the total prize allotted for the numbers you have registered - there is no tax deducted. However - once you deposit your winnings into a bank account

Tax percentage on Il lottery winnings?

Illinois withholds 3% of the winnings but you will not the total amount of taxes that you will owe until your income tax return is completed correctly. The federal amount ca

Do you have to pay taxes on lottery winnings after the first payment?

This could be possible or you could possibly receive a refund of some of the amount that was withheld from your winnings at the time that you received your payment amount. You

Do you have to pay state tax on lottery winnings?

That depends upon the state. Some will tax it, others will not. The Federal Government will tax it in all cases. There are some local taxes that might apply as well.

How much is taken in taxes on large lottery winnings?

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 fr