In Canada you have to pay taxes on gambling winnings lol.
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10
1 year ago
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5
1 year ago
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Same here. In fact when you win large prizes at slot machines in Vegas or AC, they hand you a W4 to fill out.
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1 year ago
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What is "DYK"? Is that "Did you know"? Do we have to abbreviate everything?
NGL, TKOG. 🤷🏼♂️
Yes it is "did you know" and the reason is to conserve limited characters for well perceived phrases. Get off your soap box and be more reasonable.
>How much will the Mega Millions winner actually get?
>When a grand prize winner comes forward, they must first decide whether they want to receive their winnings in a 30-year annuity, or receive their winnings in a lump sum of cash. If they pick the annuity, they will eventually receive the entire advertised jackpot over the span of three decades.
>Most jackpot winners go with the lump sum, which means they get the “cash value” of that jackpot. For Tuesday's Mega Millions $1.13 billion jackpot, the cash value was $537.5 million.
>Right away, 24% of that cash value is withheld for federal taxes and goes to the IRS, TurboTax explains.
>So if the New Jersey Mega Millions winner does select the cash option, $129 million of Tuesday's estimated prize would be withheld, dropping it to $408.5 million.
>But even then, the winner is not off the hook quite yet.
>Because the federal government counts lottery winnings as income, getting such a large jackpot would likely move the winner into a higher tax bracket, one in which their income is taxed at 37%. So when the winner next files their taxes, they’ll likely have to give the IRS another 13% of that prize.
>When a grand prize winner comes forward, they must first decide whether they want to receive their winnings in a 30-year annuity, or receive their winnings in a lump sum of cash. If they pick the annuity, they will eventually receive the entire advertised jackpot over the span of three decades.
>Most jackpot winners go with the lump sum, which means they get the “cash value” of that jackpot. For Tuesday's Mega Millions $1.13 billion jackpot, the cash value was $537.5 million.
>Right away, 24% of that cash value is withheld for federal taxes and goes to the IRS, TurboTax explains.
>So if the New Jersey Mega Millions winner does select the cash option, $129 million of Tuesday's estimated prize would be withheld, dropping it to $408.5 million.
>But even then, the winner is not off the hook quite yet.
>Because the federal government counts lottery winnings as income, getting such a large jackpot would likely move the winner into a higher tax bracket, one in which their income is taxed at 37%. So when the winner next files their taxes, they’ll likely have to give the IRS another 13% of that prize.
this is why they put super expensive cars on there. then they have an optional cash prize of like $1,000 instead. It's just funny that they pay sales tax on it and there's a prize tax on top.
Most people who win cars on game shows sell them because they can't afford or don't want to pay the taxes as the value of the car is considered income.
Sell the item, take the cash to pay taxes and use the rest. I get that taxes on prizes are dumb, all taxes are. But this is an easily surmountable problem. No reason to leave it unclaimed
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