If I win the lottery and I am a dual Citizen of Ireland? How do I pay taxes?

Question

Do I pay US first then the difference to Ireland. I am based in US. How does it work? How much can I earn before no tax? How do they find out you have won? What are the percentages?

Answer 1

The US and China are about the only major nations that tax their citizens and nationals while they are resident in a foreign country.  If you are Irish but reside in the US, Erie is not going to tax your winnings.  Or if you are from Ulster, neither is the UK.

Your US Federal tax bill would be a hair shy of $3.5 million.  Assuming that you already have taxable income in the US, all winnings are fully taxable.  Winnings of $600 or more are reported to the IRS by the State Lottery Commissions that pay the winnings.  If you fail to provide your taxpayer ID number (usually your SSN) then you will forfeit the prize.

Answer 2

If you win the lottery where will you win it?

If it is in the US then they will withhold an estimated amount for the tax due. And, tax would be due to the US on the entire amount...and you would take a credit in Ireland (I am almost positive there is a tax treaty). I am not sure of the amount that would be due to Ireland (if any).

If you win it in Ireland the reverse should be true.

Just to throw a skunk in the woodpile...if you won it in a different country...that creates even more problems.

As far as how you would pay it...you simply file a tax return.

Hope this helps.

Answer 3

Winners of the Irish lottery get their winnings tax-free, regardless of their nationality. Whether or not their home country taxes them, I don't know. If you're Irish and you win a foreign lottery, I can't imagine the Irish government taxing you for any reason. In fact, to my knowledge, if you're Irish and you live and work abroad, you owe Ireland no tax (although you will more then likely owe tax in your country of residency).

Answer 4

US citizens and residents pay income tax on worldwide income.  If you also pay tax to Ireland, you use a form to take a tax credit for some or all of the money paid to Ireland on the same income.

Always assume both countries know about the money.