Taxes on lottery winnings 2015
And state taxes typically are due as well. Yet the top marginal tax rate of 37 percent means you'd owe a lot more at tax time. The top federal tax rate is 37% for income over . Jun 30, · The federal government and all but a few state governments will immediately have their hands out for a bit of your prize. Find out more in our article. Why do we have to pay taxes and how do they contribute to society? The chance of winning the jackpot. Lottery officials withhold 24 percent for federal taxes, although you could count on owing much more. Search images, pin them and create your own moodboard. Share your ideas and creativity with Pinterest. . Find inspiration for taxes on lottery winnings on Pinterest. Some states don’t impose an income tax while others withhold over 15 percent. Depending on the number of your winnings, your federal tax rate could be as high as 37 percent as per the lottery tax calculation. State and local tax rates vary by location. 12% on the next $30, 22% on the next $45, 24% on the next $78, 32% on the next $44, 35% on the next $, 37% on any amount more than $, In other words, say you make $45, a year and you won $, in the lottery. That raises your total ordinary taxable income to $,, with. 10% on the first $9, you earn. Jul 23, · You would pay a tax of 10 percent on your first $10, and 12 percent on the remaining $5, Your total tax bill would break down as follows: ($10,) (10%) = $1, . The Connecticut Lottery Corporation will withhold Connecticut income tax at the rate of % from all payments of reportable Connecticut lottery winnings made. Income taxes are a percentage of any earned income that taxpayers owe to the government.