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I suspect your really asking " much taxes will you ultimately pay ...", which is generally different than how much will be taken out, or "withheld" to assure your ultimate payment. It is highly possible you can have nothing withheld (taken out), or a "standard" flat 25% or such may be applied. But the amount you will ultimately pay on the earnings can be substantially different. And it can and normally is different for different people, because of their different situations.

The income will be treated as ordinary income and as such will be taxed at the rate you would be paying at. In essence this can change with deductions you have or can apply. For example, proveable gambling losses may well be deductible against this income. No, there should not be FICA or payroll type taxes due. It (probably) isn't employment type income (unless your a professional gambler). Yes, you must consider the State and if applicable in that State, City and Local taxes too, which varies in all ways and places considerably. Respecfully, the nativete' shown in the question indicates you obviously need specific, hands on professional help to best handle/document and benefit from your (likley new) wealth. However, while it is a fairly modest sum of money, (much less than many annual management bonuses, etc.), I would at least avoid tax return preparation offices in favor of a local CPA or an EA (enrolled agent). Considering it comes along with the big $$...don't expect too much sympathy from others if it all sounds like a complex pain...! Congratulations!!

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โˆ™ 2009-05-04 03:29:16
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Q: How much taxes would be taken out of a lottery win in Texas?
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How much taxes would be taken out of 1030000.00 lottery win?

Usually 30% Federal Tax is taken out. Additional tax may be taken out per state. $309,000 Federal in the case of $1,030,000 leaving you with $721,000

Does a veteran have to pay taxes on $50,000 lottery winings?

If you don't want to be sued for tax evasion, even as a veteran, you would have to pay taxes on $50,000 in lottery winnings.

What if no one paid taxes?

If no one paid taxes then all government spending would be financed solely by the sale of lottery tickets.

At what age do they not take tax's from lottery winnings?

Age would not have any affect on the requirement that taxes be withheld from your lottery winnings as long as you are still living.

What would you owe in taxes for a lump sum cash Wisconsin lottery winning?

your lumps sum lottery winning are subjected to upwards of 40 percent lottery windfall tax then again at the end of the year for earned income

Why doesn't Mississippi have a lottery?

There are 7 states which do not have a lottery, each for their own reasons. Some feel as though a lottery would take away from the land based casinos which ultimately would cut jobs and create a big deficit for the state's government as far as taxes go.

What percentage is taken out of a paycheck for state taxes?

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Can property taxes be discharged in chapter 7 bankruptcy in Texas?

TAXES in CHAPTER 7sorry to tell you , but in Texas property taxes can not be discharged in any bankruptcy.As laws change every year it would be best to check with the city you live in

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What are the taxes on a 2 million dollar prize?

The tax on a two million dollar lottery jackpot is around 30%. The winner would thus be paying around $600,000 in taxes before they saw the money at all.

How much money is taken in federal taxes for every thousand you make?

Your employer would be able to give you the percentage amount that would be withheld from your pay for the total of all taxes on the 1000 amount. Social security, medicare, federal income taxes, state income taxes, local income taxes, etc.

How much is taken out of your paycheck in taxes in Arkansas?

Roughly 78% of gross pay is left after Federal, State, Medicade, and Social Security taxes are taken out. For example, a worker with an annual gross income of $40,000 - or $3,333 monthly gross income - would receive about $2,633 after taxes are removed.

How do the main characters in The Lottery by Shirley Jackson view luck?

Normally, people today would feel lucky if they won the lottery but in The Lottery by Shirly Jackson, the villagers feel lucky if they dont win the lottery. If they did win the lottery they would be sacrificed.

Should you win the lottery?

If you felt that winning the lottery was impossible, there would be little sense in buying a lottery ticket.

What taxes would you pay on a Powerball jackpot?

The federal maximum marginal tax rate for the 2010 tax year is 35% and then you would have your state income taxes. Lottery 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 may things), dependents, etc. It is fair to say that 2 people, winning the same lottery would pay different taxes.

Can a non-resident alien collect a New York lottery prize?

Yes, a non-citizen of the USA would collect a prize from the NY lottery the same way that a citizen would. The only difference is that the formula for income tax withholding would be different (although similar). Also different foreign countries have different treaties that would affect what taxes are owed. Under no circumstances, however, is a non-citizen prevented from collecting a lottery prize.

How much are the Louisiana taxes on lottery winnings?

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.)

Do senior citizens have to pay taxes on Massachusetts lottery tickets?

Yes the same as anyone else they would have include the lottery winnings on the 1040 income tax return and the the amount will be added to all other gross worldwide income and taxed at the marginal tax rate.

Can a notary play the lottery?

Of course, anyone of legal age can play the lottery. The exception would be someone who works for the lottery.

What taxes do you pay on large pay lottery winnings?

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 when u go to buy something from the store, say 15%, then it would be 15%.

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