If i were to win the illinois lottery say like 10 million... how much taxes would i have to pay ? State and Federal taxes at time of claim and then ... interest income on the money every year if i put it all in a savings account ?? Anyone know what the percentages would be... I was just curious to see how much would be taken away....
2007-05-26 16:26:51 · 0 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
Federal tax would be slightly less than 35% total. Some states don't tax their own lottery so you may not have anything there at all. Normally they withhold at 25% so you'd have to make up the difference at tax time or request additional withholdings.
It would also make a difference if you were taking a lump sum payment or were taking the 20 year annuity option. You'd pay less tax with the 20 year payout though those dollars would be less each year due to the erosive effects of inflation.
The the tax on interest going forward would depend upon the rate of return on the investment. $6.5 mil at 8% (stock market average, it would be a LOT less in a savings account) would generate $520k in annual income. You'd be hit around 32% net on that for federal taxes. Add state tax to that if you have a state income tax.
2007-05-26 21:31:06 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 1⤋
Illinois Lottery Taxes
2016-09-29 11:37:52 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Federal income tax would be a little under 35%.
Most states don't collect income tax on winnings in their state lotteries - not sure if IL is one of them.
You'd pay federal and state income tax on any earnings you made from what you won.
2007-05-26 18:34:13 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
In Canada, we get to keep our winnings. Now if only I can find a way to win? lol Our 6/49 this weekend is a cool 27 million. The winner actually gets 27 million.
2007-05-26 16:35:30 · answer #4 · answered by crazyracing8 1 · 0⤊ 0⤋
In California, Federal and State taxes account for about 50% of the winnings. S**ks huh?
2007-05-26 16:32:30 · answer #5 · answered by Joseph T 3 · 0⤊ 2⤋
Get your self the best attorney and CPA. You cannot comprehend that kind of win.
2007-05-26 16:52:40 · answer #6 · answered by Riverrat 5 · 0⤊ 0⤋