Top Lottery Systems Revealed and Reviewed
For example, if I win $ 1,000,000. 00 from "Who Wants to Be a Millionaire" or the lottery Powerball.
Take that amount, minus your standard deduction, personal deductions, dependents, medical expenses, mortgages and a bunch of other deductions you may have. The net of that will fall into a tax bracket. Hard to say exactly without looking at all of your expenses and dependents, etc, etc, but most likely you will be taxed around 30% for federal tax. Again, impossible to determine without looking at the whole picture.
Then, you need to pay the state tax, which is much lower.
But, you will be 70% richer than you were the day before you won it – and that’s the good news.
It’s taxed as ordinary income. Since we have a graduated income tax with rates that vary from 10% to 35%, the final tax bite will depend upon your other income. In most cases though you’ll pay a bit less than $350,000 in Federal income taxes, plus whatever tax is assessed by your State if it has an income tax.
It’s taxed as ordinary income, so would be at whatever your bracket is. The top bracket for federal is 35%, and a million dollar win would put you into that bracket, but the actual tax would probably be a little less than 35% because some of it would likely be in lower brackets.
State income tax would depend on where you live.
It is ordinary income.
the same amount they take from our paychecks, which is BS if u ask me
Comments are closed.