Here I heard it's 45% for lump sum plus 18% for state and city taxes....around 63% GIVE OR TAKE Every time this Q comes up it seems people want to make it much more difficult than it is. Lottery winnings are treated like any other ordinary income. It is taxed when received. If you take a lump sum payout, you would need to declare that as income on your next return, (making estimated payments as needed). The actual amount you will pay is dependent on other factors that determine your taxable income for the tax brackets. So, if you had large losses, medical or business expenses that year, you would pay a different amount. However, presuming those don't really change a large payout like you mentioned by much, you would pay the Federal and State?local income tax rates for where it was won. Presumably 32% for Federal....and whatever state/local amounts...rememebering that what you pay on the S/L is deductible from the Federal income and makes the effective State rate much less.
Taxed both Federally and State at your ordinary income rate, it's just like any other income, whatever that rate for you would be - (depends on many factors, dedcutions, other income, other expenses, businesses, etc). The State and Fed will withhold an amount of the payout as an estimated tax (like payroll withholding), until the actual tax for that person, that year is determined.
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 withheld. If a citizen or resident alien is subject to backup withholding, 28% of prizes over $600 are withheld. If the payee is a non-resident alien, 30% is withheld from all amounts.
Caution: The amount withheld is not the actual amount of tax that you owe on your lottery winnings. The amount withheld is sort of a security deposit. The actual amount owed is calculated when you fill out your tax returns at the end of the year. You may end up having to pay a lot more, especially if it is a very large prize. Or you might be due a refund.
It use to be 3% and is currently 5% for State and 25% For federal on amounts won of $5000.00 or over.
$72.97 hope this helped :)
California does not tax have a state income tax on lottery winnings. The federal withholding rate amount is 25 % to be withheld from the winnings amount.
If I win 1000.00 what do thay take out
Only the amount that is equal to your gambling losses.
Tax is withheld on all winnings in the Kansas lottery over 5,000 dollars. If less than that is won, the amount won should be claimed on tax forms.
MA state tax will be witheld on all winnings from $600-$4999. Ma state tax + 25% federal is withheld on 5k and above.
Lottery winnings will NOT count as a part of your earned income for the earnings test amount because the winning amount from the lottery is NOT earned income. Yes the amount of the lottery winnings will affect how much of your social security benefits will become taxable income on your 1040 income tax return. Depending on the total amount of all of your other gross income including the lottery winnings from 50 % to 85 % of your SSB can become taxable income on your federal income tax return at your marginal tax rate.
I won a lottery ticket in Wisconsin, worth $10,000, how much federal and state tax will be taken out?
125
Find out what the State & Federal Taxes are for your state and deduct the totals from your winnings. I'm sure the lotto officials would be glad to assist you with this or you could hire a financial consultant / accountant with that much money you can afford to hire a trusting professional to help you. If not investigate and do the math just make sure you pay it. The wonderful win, can be disastrous if not handled correctly.
To the lottery store of course! Generally, the back of the ticket informs you where to go to pick up your winnings. Pick-up locations will be different depending on how much you win.
Illinois has a five percent state tax. If someone were to win 34 million then 1.7 million will be taken out from the Illinois state tax.
34%