If you won a million dollars in a year, how much tax would you pay the US government?

It depends on your filing status.

Federal income tax on $1,000,000 by filing status from most to least:
If you are Married filing separate you pay $337,031.25
If you are Single you pay $330,470.00
If you are Married filing joint or qualifying widow(er) you pay $324,062.50
If you are Head of Household (usually single parent) you pay $327,562.00

Given only the above info - my assumptions would be no other income, a standard deduction, and *no dependents. My answers are listed per filing status for tax year 2006:

Married Filing Joint:
Taxable Income = $983,100
Tax = $317,336

Married Filing Seperate:
Taxable Income = $991,550
Tax = $333,668

Head of Household *(with 1 dependent):
Taxable Income = $985,850
Tax = $321,912

Single:
Taxable Income = $991,550
Tax = $326,903

about $350 000 (35%) in federal tax and then it would depend in which state you lived in for the rate of state tax (if there is state income tax where you live)

http://www.homepokergames.com/lotterytax.php
Do I have to pay tax on my Winnings?

Yes, you are subject to the tax rules where you live, and taxes where the lottery is being held, if it is different from where you live. No US-based lottery will pay out any winnings without first deducting the taxes due on those winnings - usually, a full 38%. US lottery winnings are taxable, as are ALL lottery wins over $600, anywhere in the world, if the player is a US citizen.

Do I have to pay tax on lottery winnings if the government doesn't find out?

Yes, you have to pay tax on all your income whether the government knows about it or not. For example, if you only bought 1 scratch ticket during a given tax year for $5 and won $50 then you would have to report $45 as income (gambling winnings) on your tax return. But NOBODY does this because the government realistically could never find out - and if they did then they wouldn't really care. But technially you still have to pay. Now, if the taxes owed were measured in the thousands, then the government would care.

Do I have to pay taxes on a lottery prize from another country?

Yes, US citizens are subject to taxation on income they make which comes from anywhere in the world, including gambling wins.

Is it true that Canadian citizens don't pay taxes on lottery wins?

If a Canadian wins the Canadian lottery, the funds are given to the winner in cash, with no tax liabilities ever.All lottery payments are in cash, with no deductions. These winnings are not taxable in Canada if you win on this lottery. There is no further liability for any amount, and you actually get 100% of the prize amount that is forecast.

So if I won the Canadian lottery would I have to pay taxes to the US government?

Yes, as the above rule states. If a US citizen wins the Canadian lottery, they would also be given the winning amount all at once, without any tax liability in Canada. But the US tax code requires you to list this win on your US income tax form, and to pay taxes on it.

It completely depends on your personal situation. It will be based on your deductions mainly. If you rent an apartment as opposed to owning, among MANY other things, it will effect your total tax due. You can plan on a marginal tax rate of somewhere around 28% for Federal purposes.
There is no way to say what your state tax due would be, as it depends on your state. Several states have no income tax, many have a progressive structure (similar to the Federal structure) and still others have a flat tax

Almost $500,000 once federal and state taxes are figured in. That's why game shows where you win a million dollars are baloney - you have to figure that the winner is only getting about half of what there prize winnings are.

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.004
Copyright (c) 2011 Financial Crisis Tuesday, May 29, 2012 - Terms of use - Privacy Policy