The Stigenator
Lifer
This is a hypotehetical question..
say you won the state lottery or maybe some game show or radio show contest that is over the $1200 limit so you you have to declare it.
my understanding is 1/2 of it dissapera to the state/fedreal and then you get taxed on it.
Lets say your winnings in the state lottery 100,000. Do you take home 50,000 after taxes (that is you lose 1/2 of original - assuming tax = 1/2) or do you lose 50,000 as part of the lottery that goes back to the state, and then get taxes on it, which means you walk home with 25,000
which is teh right one. I am discussing this with a friend and we cant seem to find the answer anywhere.
We know when John Carpenter won the 1 million on who wants to be a millionaire, he took home about 523,000 USD.. but does this rule of half to take home hold in the state lottery?
say you won the state lottery or maybe some game show or radio show contest that is over the $1200 limit so you you have to declare it.
my understanding is 1/2 of it dissapera to the state/fedreal and then you get taxed on it.
Lets say your winnings in the state lottery 100,000. Do you take home 50,000 after taxes (that is you lose 1/2 of original - assuming tax = 1/2) or do you lose 50,000 as part of the lottery that goes back to the state, and then get taxes on it, which means you walk home with 25,000
which is teh right one. I am discussing this with a friend and we cant seem to find the answer anywhere.
We know when John Carpenter won the 1 million on who wants to be a millionaire, he took home about 523,000 USD.. but does this rule of half to take home hold in the state lottery?
