Romney: Palestinians do not want peace

[AVGWarhawk]

Originally Posted by jimbuna

Just been wondering, are lottery wins taxable over in the US?

Yes, the lottery winning is considered a capital gain and taxed. Some casinos take the tax out of the winnings when you cash out and leave.

[Jimbuna]

Originally Posted by AVGWarhawk

Yes, the lottery winning is considered a capital gain and taxed. Some casinos take the tax out of the winnings when you cash out and leave.

That's a bit tough...here in the UK the winnings are tax free but once you take them out of a current account and make investments you pay tax on the interest.

Although I don't suppose that would be a major concern to someone who has just come into a mega sum of money.

[AVGWarhawk]

Originally Posted by jimbuna

That's a bit tough...here in the UK the winnings are tax free but once you take them out of a current account and make investments you pay tax on the interest.

Although I don't suppose that would be a major concern to someone who has just come into a mega sum of money.

I had a friend that won quite a bit. When he cashed in the state tax was figured on the spot and taken. Federal tax depends on the person making the claim at tax time. April 16th each year. You can imagine that does not happen for the small time winner. The mega-million winners are obviously scrutinized.

[Jimbuna]

Originally Posted by AVGWarhawk

I had a friend that won quite a bit. When he cashed in the state tax was figured on the spot and taken. Federal tax depends on the person making the claim at tax time. April 16th each year. You can imagine that does not happen for the small time winner. The mega-million winners are obviously scrutinized.

I doubt that'll ever happen to me then

[vienna]

That's a bit tough...here in the UK the winnings are tax free but once you take them out of a current account and make investments you pay tax on the interest.

Although I don't suppose that would be a major concern to someone who has just come into a mega sum of money.

Actually, I believe there is a misunderstanding about lottery winnings. The OP about lotteries was responded to by a situation regarding a "casino". If the original question was about the various US single state and/or multi-state lotteries (MegaMilions, PowerBall, etc.), the winnings are usually untaxed by the states sponsoring the respective lotteries, e.g., if you win a main prize in the MegaMillions lottery, the particpating states do not assess tax on the winnings. This is done to encourage participation in the lottery. However, if you win a main prize, the payout is over a period spanning several years (varying from 25-30 years, depending on the states), as sort of an annuity. If a winner opts for a total cash payout, the winings are decreased by approximately a quarter to a third of the total. The reasoning for this is that the lottery would be out the potential interset to be earned on the principal amount if you had elected to have the winnings paid out over many years...

In all cases, however, the US federal taxes apply, so even if the states don't dun you, the IRS will...

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