lotto question please answer?
2 questions
if I win the lotto and they take out the federal and state taxes from the start.(most lottos take it out from the start.Do you pay more taxes at the end of the year.
then here is my next question.
If you win the lotto and get put in a high tax bracket,the next year say you make 100,000 in interest are you still in a high tax bracket or do they only tax on what you made that year.do they only take money from the interest made the next year.not from the money in your bank
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Anytime you get money, (whether it's from a job or from a lottery jackpot doesn't matter), you owe a set total amount of money. Let's say it's $1,000,000 - again, it makes no difference if you earned that as a president of a company or if you hit it in the lottery. You will owe somewhere around $330,000 in taxes. SOMEWHERE around that is the important part. You won't know exactly how much until you do your tax return. After deductions and other crap that I don't understand, maybe you'll owe a bit more than that, or maybe you'll owe a bit less than that.
So let's say you have exactly $330,000 taken out at the time you receive your $1,000,000. You're paying those taxes as a "guess" to what you'll actually owe in total. When it comes tax time, if you paid too much, you'll get some back. If you paid too little, you'll owe more taxes.
As for winning the lotto, here's the truth: You could spend $50 per week for the next 70 years, and you would STILL have, for all PRACTICAL purposes, ZERO chance of ever hitting a jackpot. The lottery is nothing more than a TAX on the poor and on the ignorant.
All I can say is hit that sucker then worry about it.. Depends on if you take cash up front or 20 year annuity.. No matter what you will wind up with less than 15% of what was wagered on that play.
Tell me our Government ain't strung out on gambling.