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Question
Good Morning,
I have a question concerning the federal law on lottery winnings. In October I had a winning instant ticket for $8000. I am just wondering what the federal tax rate is for that type of situation. Thank you for your time and help!
Susan
Dear Susan, There actually is no set federal tax rate for lottery winnings.... You will show that income on the 1040 on the "other income" line and it will be added to your TOTAL income for the 1040 and will be taxed accordingly after your standard deduction or itemized deduction and your exemptions...
I hope you were smart enough to have federal and state (if applicable) taxes withheld from those winnings and if so you will show this on the back of the 1040 also and it will help in reducing your tax debt...
thank you, karen
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Karen Brawner
Expertise
I will help you with your questions regarding personal taxes and sole-proprietorships. I prefer not to answer questions regarding Coporations, Partnerships and LLC`s... Been in accounting and tax preparation field for 38 years, in business for myself in the same fields for 10 years prior to retirement due to disability.
Experience
Been in the field of bookkeeping, accounting and tax preparation for 38 years. Had my own bookkeeping and accounting firm for 10 years and then turned it over to my daughter when I became disabled.
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