lottery reviews   5   October 16, 2009

For example, if I win $ 1,000,000. 00 from "Who Wants to Be a Millionaire" or the lottery Powerball.

 

Comments

  • 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

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