lottery winnings

[amelia21]

What is the name of your state? Texas
What percentage goes to the IRS on a $250,000. lottery win?

 

[seniorjudge]

What is the name of your state? Texas
What percentage goes to the IRS on a $250,000. lottery win?

Probably half. (Just a guess...stand by for other opinions.)

 

[LdiJ]

Probably half. (Just a guess...stand by for other opinions.)

It depends on your other income and your filing status.

The top tax bracket is 35%

If you are single your income will be taxed as follows:

First 7300 10%
The amount between 7300 and 29700 15%
The amount between 29700 and 71940 25%
The amount between 71950 and 150150 28%
The amount between 150150 and 326450 33%
Over 326450 35%

If you are married:

First 14600 10%
The amount between 14600 and 59400 15%
The amount between 59400 and 119950 25%
The amount between 119950 and 182800 28%
The amount between 182800 and 326450 33%
Over 326450 35%

This applies to federal income tax only. If your state assesses income tax on lottery winning (many don't) then state tax would also apply.

So...lets say, for example, that your adjust gross income is a total of 300,000
and you are married with two dependents and you take the standard deduction.

AGI 300,000
Less standard ded -10,000
Less exemptions -12800

Taxable income 277,200
Tax 72,067

That represents 24% of the total income. So 50% would be a very high estimate unless TX state income taxes are VERY high.