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4 answers

In the US, it depends on what other income you have. Basically, if nothing else changed much in your income in the year you won, find what your tax bracket was for the previous year (what percent tax did you pay on the last dollar you made the previous year), multiply that percent by $9000, and you'll probably be close .

As a ballpark figure, if you're single and grossing under $30,000 or so in other income, you'd probably have to pay about $1350; single and over $30,000 but under around $70,000, you'd owe around $2250 on your winnings. If you're married, you can make more and those figures would still hold (around $60,000 to still pay 15% or $1350, up to around $120,000 and pay $2250).

The exact amount is figured by adding the winnings, minus gambling losses for the year that you can document, plus all of your other taxable income, and figuring your tax by subtracting exemptions and deductions, then calculating tax on what's left. If you use the tables from last year, available at IRS.gov, you won't be far off.

Many places automatically take out 20% withholding, which might or might not cover the taxes due depending on your other income

The above is just for federal. Depending on where you live and on the source of the winnings, you might have to pay state tax also. That is most likely a considerably lower amount than the federal - the amount depends on your state. Some states don't tax winnings from their state lottery.

2006-07-08 03:37:23 · answer #1 · answered by Judy 7 · 0 0

Money you win like that is taxable and included in your gross income on line 21 of your 1040 form. Sometimes the company will issue you a W2G at the end of the year to report your winning$, sometimes they don't. Either way it is included in your gross income and then you are taxed at a rate dependent on your other income and deductions you may have. There is not enough info. to say exactly.

2006-07-08 04:46:43 · answer #2 · answered by lade40free 2 · 0 0

In my country I will pay 1800 $

2006-07-07 23:30:14 · answer #3 · answered by hard_cane0 5 · 0 0

it depends on your state tax... where do you live?

2006-07-08 03:33:14 · answer #4 · answered by Becka 2 · 0 0

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