winning the lotto and paying taxes?

Question

if i win a lotto in the amount of $3800. how much taxes will i have to pay when i file my taxes?

Answer 1

If you can prove gambling losses totaling exactly what you have won, then you don't have to pay taxes on any of your winnings... but remember you can only deduct the amount of your winnings, and not any offsets other then that amount... in other words, if you won a total of $3800 dollars and spent $4000 in the process, you could only claim $3800 of the loss... no more than you won !
You must save your losing lottery tickets to prove this though !
If you don't have gambling losses that big, I would make certain to send the IRS at least 25% of the winnings and the state at least 13%... make sure you submit this before the next quarterly tax due date, otherwise you will be penalized !

Answer 2

It is my understanding that any winnings whether it be lotto, internet games, Survivor, The Amazing Race, anything at all that we might win (including gambling winnings) 1/3 of all winnings goes to Uncle Sam. There is a place for Lotto winnings on your tax return and I'm sure you received what I think may be a 1099 (don't quote me). What you don't want to do is NOT claim it. Remember Richard Hatch from Survivor....that's how he ended up in jail, by not claiming the million he won...better to pay Uncle Sam upon winning your prize and get it out of the way. Anyway, hope it helps.

Answer 3

It depends on your tax bracket, which depends on your total income and many other factors. The tax on a $3800 win could be anywhere from zero to $1330. For most people, would be between $380 and $950.

Answer 4

Nobody here can answer that. It depends on how that $3,800 fits into your entire tax/income/deduction picture. You may only have to pay Federal tax on it, though, and not State. I'm not sure on that.