Lottery Money

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I worked for 1 month this year and made roughly $1500. I won $1000 in July, and tonight I won another $1000. IRS.gov website says the minimum taxable income requirement is roughly $9000 for 2009. Lottery winnings are taxable and considered "other income", according to the IRS, and my income for the year, at this point, is about $3500. Assuming I make less than the minimum taxable income requirement, do I have to file taxes only because I won the lottery?

No, you are not required to file the tax return if your total income is les than the filing requirement.
Only if tax is withheld from winnings, you will file tax return to get the refund.

Whats a movie about a very poor person winning the lottery and becoming very rich.

"A Million To Juan"

I have tried to figure out how and what all is taken out of a lottery winners winnings. I have seen on TV that some single winners in their own state who have won over 300 million dollars,and end up with only about 30 million, how is this possible.

The big 300-million dollar jackpots are for games like Mega Millions and PowerBall. These are multi-state drawings.

So there might be only 1 winner from Iowa, but for that same 300-million dollar prize, there might also be 1 winner from California and 1 winner from Florida. (I’m just making up any states.)

So the person from Iowa wins only 100-million. They take the "lump sum" which means they get only 1/2 of it right now rather than the whole thing over 20 years. Now they are down to 50 million. From that, the government takes 20 million in taxes, leaving them with only 30 million dollars.

******GOOD NEWS*******

You will NEVER have to worry about this problem because you will NEVER, ever, ever, ever, EVER win a big jackpot prize. I won’t ever win one either! This is the truth. Buy just ONE ticket once in a while for the dream of "winning it big". Any more money spent is a total waste.

I play sometimes, but most of the time I never really play based on the fact that if someone DOES win, it’s someone who already knows the numbers because they operate the machine or one of the employees with the lottery all play amongst themselves and make sure they win all the time. Kind of like sweepstakes with companies, where the employees are digging in and opening tickets to see if they won. Dirty internal business similiar to Enron, and Tyco, and anything else you can think of…Bush and Florida elections, Bush and oil too. LOL Anyway what do you think?

I KNOW that the lottery is set up for people to lose their money. I wouldn’t go so far as to say it is "rigged" but by definition, "gambling" is designed for the "house" to win. Over time, if you gamble long enough, you will lose money. If the state wasn’t raking in money hand over fist, they wouldn’t have set it up in the first place. It was designed to generate income for the state. Now I am not saying that people don’t win occasionally, but in the long run, unless you are one of the lucky few that wins big, you will lose money. Do the math.

Can anyone tell me what the tax in pa is on winning 2500 on the lottery? Any help would be appreciated!

The state will charge you the same amount as they would on any other form of income, which is apparently 3.07% or $76.75 in state tax.

http://swz.salary.com/salarywizard/layouthtmls/swzl_statetaxrate_PA.html

http://en.wikipedia.org/wiki/Pennsylvania_Lottery

The federal government will charge a rate that is based upon the rest of income that you earn. Lower income people will have to pay less (if any). Higher income people will have to pay more. Most people will pay somewhere between 10% and 28%. For example, I make $40,000 a year in normal income and would pay 25% to the IRS.

http://www.moneychimp.com/features/tax_brackets.htm

I won 2 four digit straight numbers and the price is $5000 each. My question is that, i am Illinois state resident and i won the lottery in Michigan, how much tax will i pay at the lottery place?
OR
Do i have to pay tax upfront and than pay tax again at the end of a year?

Thanks in advance.

If MI taxes lottery winnings, MI state income taxes will be withheld along with the Federal income taxes. You’ll have to file a non-resident MI income tax return showing only the lottery winnings and pay any MI tax due if the withholding was not enough. If it was too much, you’ll get a refund.

IL is entitled to tax that win as well, so it must be included in your IL return. IL will give you a credit for the lower of the MI tax actually paid OR the amount of tax that IL would have collected on it. This works out such that you will pay state income tax on the lottery win at the higher of the MI and IL rates. You are not double taxed, however.

If you hit the lottery, what would you do with the money to ensure that you keep it and make enough money off of it to live on for the rest of your life?
Suspic- Starting a restaurant is a terrible idea! They generally go bankrupt within two years!

New Catholic – I would like to hear more of your ideas. Say you got $60,000,000 would you find an investment firm to handle it, or what? And what do you think your average yearly income would be off of $60,000,000?

It depends on how much you won!

I personally won the mega millions lottery last year, but my life style has not changed at all.

But it was only a $5.00 winner.

Seriously, if you can invest enough to give yourself a guaranteed income first and then use a portion of the rest to help the poor, and to invest in riskier endeavors, that would be my plan.

Good Luck!

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