If I Win Big On The California State Lottery, Do I Pay Taxes On My Win? How Much? Does It Depend On My Other Income?

by **gilleabart** » Sun Dec 29, 2013 11:36 pm

I am a California resident.

by **Becher** » Mon Jan 20, 2014 1:29 am

dejapooh said: 1 NanoNano, regarding your answer "yes": Sorry, it is not capital gains, it is ordinary income. 74 months ago

by **Cheung** » Thu Feb 06, 2014 8:45 am

NanoNano, regarding your answer "yes": Sorry, it is not capital gains, it is ordinary income.

by **Joben** » Thu Feb 06, 2014 10:22 pm

yes Yes, you pay in the highest tax bracket if you take out all of the money at once(39.8%). If you take it out as monthly payments, you will be taxed on your total yearly income which could also be at the highest tax bracket. flash42's Recommendations Lottery winnings as capital gains.(Case Note): An article from: Yale Law Journal Amazon List Price: $5.95 flash42 74 months ago Please sign in to give a compliment. Please verify your account to give a compliment. Please sign in to send a message. Please verify your account to send a message.

by **William** » Tue Feb 11, 2014 5:35 am

Capital gains tax is somewhere in the range of 35% for people in higher income brackets($200,000 and above) and you would be placed in such a bracket if you won big in the lottery. It depends also on how you take it. The lump sum would immediately require this tax. If you took the annuity over 20 years, then it might be based on a lower tax bracket, as if your income had suddenly gone up $50,000 a year...

by **Colvyr** » Thu Feb 13, 2014 1:30 am

yes All winnings over $1199 a year are considered income. You can deduct all provable expenses(tickets that lost). dejapooh 74 months ago Please sign in to give a compliment. Please verify your account to give a compliment. Please sign in to send a message. Please verify your account to send a message.

by **Buddey** » Fri Feb 14, 2014 9:17 am

All winnings over $1199 a year are considered income. You can deduct all provable expenses(tickets that lost).

by **Ulfr** » Tue Feb 18, 2014 7:31 pm

Yes, it is considered income and so will be taxed accordingly by state and federal government. It is simply added on top of whatever income you are already making. http://www.williamsmullen.com/news/articles_detail/019.htm

by **Kulbart** » Mon Mar 03, 2014 8:00 am

Yes, you pay in the highest tax bracket if you take out all of the money at once(39.8%). If you take it out as monthly payments, you will be taxed on your total yearly income which could also be at the highest tax bracket.

by **Washington** » Fri Mar 07, 2014 10:17 pm

Yes. Yes, it is considered income and so will be taxed accordingly by state and federal government. It is simply added on top of whatever income you are already making. http://www.williamsmullen.com/news/articles_detail/019.htm Sources: http://www.williamsmullen.com/news/articles_detail/019.htm DrKenneth 74 months ago Please sign in to give a compliment. Please verify your account to give a compliment. Please sign in to send a message. Please verify your account to send a message.

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