I have won sizeable international lotteries (2,000,000 & 500,000).
How do I pay the taxes and how much do I have to pay?
2007-04-01 02:36:00 · 7 answers · asked by Eileen D 1 in Business & Finance ➔ Taxes ➔ United Kingdom
If you have won that much money, you need to see a tax specialist. You can afford it, and they will know best how to calculate the costs.
However, there are so many scams and frauds lately surrounding international lotteries (most of which are illegal)
I would be recommend that you do not send any money or financial information to the 'organization' that claims you won a prize.
You don't ever have to pay upfront fees to collect winnings from a legitimate lottery. Also in many cases, the scammers send the 'winner' a check and say you need to cash it and send them back the money, and later on, the check fails to clear and the bank collects the monies from the account holder. Check online for more information about international lottery fraud and advance fee scams.
2007-04-01 05:27:37 · answer #1 · answered by Piggiepants 7 · 0⤊ 0⤋
What I think is that the payer will always give you the remaining money after deduction the required tax. If the winning is international and not in the US then in such case you will have to see whether US has any avoidance of double taxation treaty with that country or not. If they have, then the tax deducted at source will be the only tax you have to pay, otherwise you will need to see as per local laws as well. Since its a huge amount, you better seek professional advice (no matter you can afford it now ;)
2007-04-01 02:50:10 · answer #2 · answered by its m 3 · 0⤊ 0⤋
If you've actually received the money, not just emails saying you've won, then you list it on line 8 of your PA-40 form and fill out schedule T and include it with your PA return. You'll pay the 3.07% PA income tax on the winnings.
2007-04-01 06:04:36 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
If you live in the U.S. the standard tax rate is 30%.You need to get with the IRS to confirm this since these winnings were international to see if you owe any foreign tax on this money also.
2007-04-01 02:41:21 · answer #4 · answered by Bill F 2 · 0⤊ 0⤋
yea on the U.S. lotteries..
there is even fine print in the U.S. lotteries that the money can not leave the U.S. cause it is over $10,000
even though the ticket is sold abroad..
heard the "irish sweepstakes" do actually pay..the amount..
good luck..
2007-04-01 02:55:49 · answer #5 · answered by m2 5 · 0⤊ 0⤋
i dont think you have to pay on anything less than 10,000 dollars, or at least thats the way it is at the casino
2007-04-01 02:40:05 · answer #6 · answered by bigjacka55 3 · 0⤊ 1⤋
$0.00
You didn't win. You are about to (or just did) fall for a scam.
2007-04-01 04:17:18 · answer #7 · answered by Wayne Z 7 · 1⤊ 0⤋