If you win a-lot of money, WHY................????????????

Question

If you win a-lot of money, why do they take out the taxes? I know if you buy something you haft to pay tax, but why do they take out the tax if you won a-lot of money? That's your money that you have won. You should keep all of your money.

Answer 1

Because it's income, so it's taxable, that's why.

If you make money at a job, you pay taxes on it. Same deal if you win something in a contest - you owe income tax on it.

Answer 2

Be very careful what you do with your good fortune...don't go and squander the money like so many people do.With the state of the economy at the moment,and the forever increase in cost of living,you need to make the money work for yourself.I personally would seek financial advice and invest the majority of whatever the sum maybe...of course I would have a party for close friends,and also move abroad as anywhere has got to be better than this country...but I would still make sure that I have put plenty aside for a rainy day which will surely come along in time.

Answer 3

Prize money is considered ordinary income and will be taxed as such.

Answer 4

Because it's income.

Answer 5

Because it's taxable, that's why! Just like your paycheck is!

Answer 6

its considered income.

Answer 7

i agree but that man with the silly hat is just waiting to stick his hands in your pocket and if you don't let him, he tells people bad people, and then you get punished badly~

Answer 8

Because our greedy legislators can never get enough of our money fast enough for their pork projects, so they always need more.