I live in pennsylvania and won 200,00 dollars how much will my husband and i get after taxes..I read that in pennsylvania that state and local taxes are not taken out.
2007-07-20 10:41:38 · 5 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
I mean lottery winnings
2007-07-20 10:42:03 · update #1
will this be over time payments or all at once or lump sum option? And I'm not sure whether you say you won 20,000 or 200,000 or 200. Could you please fix the $ amount that you won.
2007-07-20 10:55:40 · answer #1 · answered by Anonymous · 0⤊ 0⤋
First, let's deal with the state and local taxes. In Pennsylvania, if the lottery winnings are for the PA lottery then guess what....its not subject to state income taxes. Typically, the locals follow in line with the state and the winnings would not be taxable local either (check with the local tax bureau to verify this).
So we're left with the federal taxes. Typically, Pennsylvania does withhold 25% for federal taxes on lottery winnings (at least a certain client that I have who won a $1,00,000 PA lottery had 25% withheld). Therefore, you'll be left with $150,000.
Congrats and talk to your accountant/CPA for more answers. Hope this helps!!
2007-07-20 18:00:45 · answer #2 · answered by NoNickname 2 · 0⤊ 0⤋
If it was from the state lottery in PA, you won't pay state income tax on the win. And the local tax is just on earned income, so lottery winnings aren't taxed there either. You'll just pay federal income tax on it, at whatever your tax bracket comes out to be after the $200K is added in. You'll probably still end up with around $140K out of it - not shabby.
The state will withhold some of your winnings when you get your check. Be aware that it might or might not be enough to cover what you'll owe at the end of the year - it probably won't be. So don't spend it all before you figure your taxes.
Congratulations.
2007-07-20 19:40:59 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Congratulations!! You might want to make an estimate payment to Pennsylvania to your local taxing agency. I do not know the tax rate in PA, however, if it is a flat rate, just multiply it by that amount. And guess what? that payment will be deductible when you file your return. In Michigan, the lottery withholds 25% for federal and 4% for Michigan. I'm note sure about any local taxes. Contact your tax preparer for assistance.
2007-07-20 17:58:27 · answer #4 · answered by IRENE THE BOOKIE 3 · 0⤊ 1⤋
The lump sum tax withholding rate is 25% ($50,000). However, you will likely owe more than that. The $200,000 will add to your household AGI (adjusted gross income) and the taxable amount of you AGI will depend on your filing status, standard or itemized deductions, and personal exemptios.
2007-07-20 17:55:36 · answer #5 · answered by skipper 7 · 0⤊ 0⤋