Gambling Winnings question!?

Question

Do I get taxed MORE for my gambling winnings than my personal income from my job for the year? If so, by how much is the tax percent for my gambling winnings?

Is it based on brackets for how much money I have "won"? What is the difference in taxes if I won the lotto for $10 million dollars and decided to collect over 30 yrs rather than taking the lump sum of about 6.3-6.5 million?

Answer 1

Gambling winnings are income and are added to any other income you have to determine your tax liability.  The United States has a progressive tax system where the more money you make, the larger % you pay on that income that year.

When you collect over 30 years, you pay over 30 years.  When you take a lump sum, you pay income taxes in that year.

Answer 2

Taking a lump sum payment has nothing to do with taxes.  It is basically an additional penalty that you can't get a refund for.

As for taxes, anything over $357,000 is a 35% tax rate and it is tiered up to that amount this amount also includes money you made at your job.  If you decide to take $10 million over 30 years then you are still tiered between 25% to 35% on most of it.

Answer 3

Play poker with http://www.doylesroom.com/

Answer 4

not more but maybe less.   you might not have to pay social security tax just straight income...also, if you won in Nevada you probably do not have to pay state tax on it..