tax withholding rules?

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tax withholding rules?

Under what conditions are the payers of a sweepstakes required to withhold income taxes?

2007-08-14 10:50:19 · 1 answers · asked by RUSerious 7 in Business & Finance ➔ Taxes ➔ United States

1 answers

Good question...In California if you win a one-half share of the $7,000,000 Super Lotto and take the cash value of about $1,750,000, Federal Taxes are withheld. If, however, you win the $70,000,000 Super Lotto and take the annual payment option, you will get $1,750,000 in the first year and no taxes are withheld. Seems odd.

2007-08-14 11:49:00 · answer #1 · answered by skipper 7 · 0⤊ 0⤋