ChoppedLiver
New member
Let's say you won a big lottery prize on Jan. 1. And you took a lump sum.
Now, the lump sum is (X) and the Feds. take their 39.6% off of that.
Let's pretend that (X) - 39.6% = $100,000,000.00 (And if you live in a state that doesn't tax the lottery [there are 10], the 100M is what you net.)
Now say you were somewhat frugal and just kept $100,000.00 for "fun $$$" and put every penny of the rest in tax deferred investments of some form.
So, in a hypothetical scenario like that, the question is...
When you do your taxes for the year you won, would you get a return from the Feds from the 39.6% they took out minus the taxes you would have to pay on the $100,000.00 you took out as "income" that you pocketed?
It USED to be that the Feds. took 20% (later bumped to 25%, I believe) and that was it, no return of their "share". The only further tax liability you had was on the money your money made you over the years. I believe it was Obamacare that changed that and put big lottery winnings in the highest tax bracket. And, if that is the case, I believe you should get a tax return from the Feds. if the hypothetical scenario above was followed.
Anyone know?
Now, the lump sum is (X) and the Feds. take their 39.6% off of that.
Let's pretend that (X) - 39.6% = $100,000,000.00 (And if you live in a state that doesn't tax the lottery [there are 10], the 100M is what you net.)
Now say you were somewhat frugal and just kept $100,000.00 for "fun $$$" and put every penny of the rest in tax deferred investments of some form.
So, in a hypothetical scenario like that, the question is...
When you do your taxes for the year you won, would you get a return from the Feds from the 39.6% they took out minus the taxes you would have to pay on the $100,000.00 you took out as "income" that you pocketed?
It USED to be that the Feds. took 20% (later bumped to 25%, I believe) and that was it, no return of their "share". The only further tax liability you had was on the money your money made you over the years. I believe it was Obamacare that changed that and put big lottery winnings in the highest tax bracket. And, if that is the case, I believe you should get a tax return from the Feds. if the hypothetical scenario above was followed.
Anyone know?