Do you have to go somewhere or is a lawyer needed?? I live in TX.
2007-04-16 07:48:44 · 5 answers · asked by Sweetheart 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
You don't need a lawyer.
They'll take out some taxes, then send you a 1099 form at the end of the year showing the total winnings and the total taxes withheld. Those numbers will go on your 1040 form where it will add to any other income you have. If they took out too much, you'll get the extra refunded - if they didn't take out enough, you'll owe the balance.
2007-04-16 08:04:23 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Casinos and lottery organizations are REQUIRED to get your SS# and other info before they hand you a nickle. They will take out a percentage for taxes, sometimes as much as half, because you will be in a higher tax bracket when you go to file.
You don't 'need' a lawyer or accountant to pick up your money, but it's strongly recommended that you speak to a qualified one right away. NOT the son-of-your-sisters-best-friend, but a qualified accountant. The lottery commission can probably recommend a few.
Statistics say that something like two-thirds of lottery winners go bankrupt in a few years, because they spend their winnings on houses and property that they forget will require property taxes and maintenance for years to come.
Another recommendation is to change your phone number to an unlisted one. People will call a winner (assuming that you have millions to spare) and ask you to pay for their children's hospital care, get them out of bankruptcy, or invest in some get-richer-scheme. Screen your calls (make your answering machine message say 'all requests for money will be screened by my attorney/accountant'.) which slows them down.
And, congratulations!
2007-04-16 15:24:11 · answer #2 · answered by Sue 5 · 0⤊ 0⤋
It all depends on how and where you won the money. I won ohio lotterys cash explosion last year. They automatically took the taxes plus a percentage extra just to make sure I didn't get hit at filing time this year.
2007-04-16 14:52:41 · answer #3 · answered by MommaSchmitt 4 · 0⤊ 0⤋
I am not sure but, I think you can request for them to take out the taxes, if not then you are on you own with paying the taxes.
2007-04-16 14:53:09 · answer #4 · answered by Anonymous · 0⤊ 0⤋
They will take out 10 cent of every dollar.
2007-04-16 14:52:42 · answer #5 · answered by Anonymous · 0⤊ 1⤋