At the end of the tax year after your 1040 federal income tax return is completely and correctly YES.
Taxes on lottery (or gambing, etc) winnings are the same as any other ordinary income in both amount and use.
Lottery winnings will NOT count as a part of your earned income for the earnings test amount because the winning amount from the lottery is NOT earned income. Yes the amount of the lottery winnings will affect how much of your social security benefits will become taxable income on your 1040 income tax return. Depending on the total amount of all of your other gross income including the lottery winnings from 50 % to 85 % of your SSB can become taxable income on your federal income tax return at your marginal tax rate.
Yes you will have to pay state taxes to North Carolina after adding your lottery winnings to all of your other gross income on the state income tax return.
You do know what is going to take place when you owe back taxes, penalties and interest from past years. And of course they will already have some income taxes that were withheld from your winnings that you will have to file a 1040 federal income tax return for to report your winnings and all other sources of gross worldwide income on.
Lottery winning are the same as any other earning...and will be taxed federally and locally as any other income of that amount would be (which of course depends on many things, income level, number of dependents, number of deductions, etc.etc.)
How much you pay ultimately depends on your own tax situation and tax rate. There is no specific rate or category for income from types of gambling. The withholding (like from a payroll, as an estimate of the tax) required at the casino is normally a minimum of 20%, but can depend again on your situation too. It is NOT the amount you pay...just a payment in advance to assure the amount you owe is paid. Lottery and Gambling winnings are taxed like any other income. That amount, or percent, of course changes with everyones personal situation, other income, expenses, deductions, exemptions, STATE (and state income tax is a deduction to Federal taxable income, so that changes many things), dependents, etc. It is fair to say that 2 people, winning the same lottery would normally pay different amount of taxes. Proveable losses are deductible against winning, so keep those losing lottery tickets! Many people have tried to claim the winnings as Capital in nature, for the lower tax rate. The courts have denied that in each case. If you are a professional gambler, the tax handling may change, as it is income from self employment...there are both good and bad aspects to this.
Taxed as any other ordinary income...meaning at your own personal rate consideing all deduction, exemptions, etc.
The federal maximum marginal tax rate for the 2010 tax year is 35% and then you would have your state income taxes. Lottery winnings are taxed like any other income. That amount or percent of course changes with everyones personal situation, other income, expenses, deductions, exemptions, STATE (and state income tax is a deduction to Federal taxable income, so that changes may things), dependents, etc. It is fair to say that 2 people, winning the same lottery would pay different taxes.
Line 21-other income
Yep. All income is taxable.WSOP Calander 2009 | Online Poker NewsThe 2009 WSOP (World Series of Poker) Schedule. ...Tax forms will be completed for those with winnings in excess of $5000 net of event buy-in. ...www.4flush.com/2009-world-series-of-poker-schedule-wsop/
According to the IRS, all gambling winnings are considered income, therefore all gambling winnings are taxable and must be claimed, under the same rules and limitations as any other income.
Yes, California does collect tax from California Residents who win lotteries from other states. See Page 4, Line 21 of this State of California Franchise Tax Board document: http://www.ftb.ca.gov/forms/2010/10_540cains.pdf Quote: "California excludes California lottery winnings from taxable income." However, "Make no adjustment for lottery winnings from other states. They are taxable by California." Federal taxes will be collected on most lottery winnings as well.