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Asked by: Jesica Hogan
My boyfriend won this off a scratch off and i didn’t know how to figure it out, so maybe somebody on here would?
BATMAN™ on Aug 19, 2011
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Huntsman on Aug 19, 2011
About 40% will be taken out for taxes
(usually people state half – but it sounds like you will still stay in a lower tax bracket)
John Forbes on Aug 19, 2011
Bostonian In MO on Aug 19, 2011
The total tax bite will depend upon his total income for the year. No way to say without knowing ALL of his tax information.
The amount of tax withheld would be 25% for federal income taxes plus whatever KY requires (if any) but that’s treated the same as taxes withheld from wages at filing time. It may be too high or too low and without all of the relevant tax information there’s no way to say.
tro on Aug 19, 2011
the organization paying the prize may withhold anywhere from 20 – 30%
but the amount he will actually pay for winning will depend on the total amount of his gross income for 2011
Bobbie on Aug 19, 2011
When he goes to collect his winnings he will find out exactly what amount that they will be required to withhold from his GROSS winnings before they will issue him the NET PAYMENT amount check for him to spend as he chooses.
Then he and you will NOT have any more worry and problems UNTIL the tax filing season in the year 2012 when he will be required to completely complete his 2011 1040 income tax return and report the GROSS winnings amount on the page 1 of the 1040 income tax return line 21 other income and claim the estimated federal advance income tax payment as a credit on the page 2 of the 1040 line 61 federal income tax withheld from Forms W-2 and 1099. 61 $ $ $ $ $ amount.
For the federal income tax amount the payer of the funds may be required to withhold 25% to 28% of gambling winnings for federal income tax purposes.
Or if backup withholding would be required the federal income tax amount could be up to 31%.
In addition to federal tax, your state will make additional withholdings for taxes, and most states will deduct other money that you may owe to the state, such as back taxes, child support, loan payments, etc. The state tax withholdings are as follows:
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Hope that you find the above enclosed information useful. 08/12/2011
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