How would you claim tax on lottery winnings over seventy thousand?

Answer 1

Your question is ambiguous and can be read 2 ways:

First, How do I calculate how much tax I'll pay on my tax return next year?

Answer: Add the $70k to your other anticipated income. Using your 2006 tax return, ude the same amounts for deductions (taking into account major changes like kids moving out). Go to IRS.gov and look up form 1040 instructions and find the tax table. Read across for your filing status and down for income and there is your "income tax before credits".

Reduce tax by last years credits. Add in any other taxes (S/E tax, etc.) and you have a pretty good approximation of the total tax on your 2007 form 1040.

Now to the second reading of your question: How much of my winnings should I send to IRS and how do I do it?

Again add your winnings to last year's "taxable income". Then look in the form 1040 instructions for the Tax Rate Schedules, which follow the Tax Tables. Using the table for your filing status look up the percentage rate. Multiply your winnings by the rate and you have your tax (assuming all $70k was in one bracket). If it figures into 2 brackets, you'll need to do the calc twice and add them together.

How to pay: Using 2007 form 1040ES (estimated tax voucker) follow the instructions and send the amount we just calc'd

Congrats on your good fortune. You have more good karma coming because you recognize that part of the winnings go to the government and you are willing to send it.

Well done, Grasshopper!!

Answer 2

I assume you're talking about one of the state lotteries. They'd withhold some of the winnings for federal income tax, but that might or might not be enough. Most states do not charge income tax on winnings on their lotteries.

At the end of the year, they'll send you a 1099 showing the amount of your winnings and the amount withheld. You'll show the winnings as "other income" on your tax return and calculate your income tax on that along with whatever other income you have. Then you'll compare your tax liability to your total withholding including the amount withheld from your lottery win, and either owe or get a refund depending on whether or not you paid enough in.

Answer 3

You need a tax attorney.

Answer 4

just have a CPA do your taxes that year, they'll figure it out.

Answer 5

I would ask an accountant!

Answer 6

idk but if u find the place can i have sum?!?!?!?