2006-10-05 10:53:58 · 6 answers · asked by bigsexy 1 in Business & Finance ➔ Taxes ➔ United States
All income are subject to tax.
You can also deduct losses to off set your earning if you itemize your deduction on Schedule A (1040) or Schedule 1 (1040A).
Best wishes.
2006-10-05 10:56:03 · answer #1 · answered by JQT 6 · 0⤊ 0⤋
Because it's income, just the same as the money you work for. And the federal government taxes all income, no matter where it comes from. On the plus side, many state lotteries (like California's) don't assess state taxes on residents who win their lottery...:)
2006-10-05 17:57:42 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The government has it's hands in all of your pockets. There are taxes on virtually everything. The US constitution had to be amended to allow the government to impose taxes.
At the time of the amendment, lotteries were illegal. Now they are legal. If you feel like taking the government on, in court, argue that lottery winnings are not covered by the constitutional amendment.
2006-10-05 17:58:29 · answer #3 · answered by regerugged 7 · 1⤊ 0⤋
Gambling and lottery winnings are considered income.
2006-10-06 11:52:03 · answer #4 · answered by Beautiful_Brown_Eyed_Girl 2 · 0⤊ 0⤋
The Government want's to get their cut. I think it's stupid, but if you hit BIG you'll still have a few million left after taxes. I'd be happy with a few milllion.
2006-10-05 18:02:26 · answer #5 · answered by Anonymous · 0⤊ 0⤋
That's for the privilege of being an American citizen. Buy Canadian tickets.
2006-10-05 18:01:06 · answer #6 · answered by unbelievable 4 · 0⤊ 0⤋