Ok so I live in california and I just won 100 grand on a sratcher off ticket and I have to drive to sacramento tomorrow to claim my winnings and I was just wondering how much money are they going to deduct for tax.
2007-09-01 13:30:55 · 3 answers · asked by Young J 2 in Business & Finance ➔ Taxes ➔ United States
Congrats on your win - that must have been a pretty good feeling, seeing that come up!
They'll probably withhold 20-25% up front. That might not be enough, so you need to figure out how much your tax will really be on it, and make a quarterly payment if not enough is withheld.
In any case, you'll have lots left over after taxes are all paid.
2007-09-01 13:54:13 · answer #1 · answered by Judy 7 · 1⤊ 0⤋
All prizes on scratchers, Fantasy 5, Daily Derby, Daily 3, and non-jackpot Super Lotto Plus and Mega Millions prizes, are paid out in one payment, less 25% Federal taxes if the prize is over $5,000. California recently stopped deducting State Tax on lottery winnings.
2007-09-01 20:39:00 · answer #2 · answered by mister_galager 5 · 0⤊ 0⤋
The tax that will be withheld is not gone forever. Next April you will have to report the winnings on your tax return and will get credit for whatever is withheld. I hope it is enough. You will not have to pay California State Income tax on your winnings.
2007-09-01 21:07:40 · answer #3 · answered by Anonymous · 1⤊ 0⤋