I won $5,000 on a scratch off how much taxes do I have to pay?

I won $5,000 on a scratch off how much taxes do I have to pay?

Postby jereth96 » Mon Mar 14, 2011 9:02 am

Many people confused about the tax of the winning amount from scratch tickets.
As per law in many states, at least 10% should be paid at the counter when you recieve your payment.
Eventhough, payment being made toward winning amount, this is not the end of it. We must know that all of these amounts must be added to your income when filing your tax return. Also, it depends on if your income goes up becuase of the winning scratch, this will play major role to increase your tax. The tax you paid when winning is not final, it is nothing but withholding tax.
If you are single and earned nothing, you should pay 10% of that amount at least.
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I won $5,000 on a scratch off how much taxes do I have to pay?

Postby connlaio » Mon Mar 14, 2011 9:04 am

You should have received a form W-2G. Put the information on the form into your tax software. It is regular income so it all depend on your tax bracket. You can not subtract loses from the 5000. You can deduct loses if you itemize.
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I won $5,000 on a scratch off how much taxes do I have to pay?

Postby dent100 » Mon Mar 14, 2011 9:07 am

It depends on the rest of your tax situation. IT is added to your income.
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I won $5,000 on a scratch off how much taxes do I have to pay?

Postby ozi » Mon Mar 14, 2011 9:08 am

it depends on how much this impacts your gross income
if this $5000 was all you got during the year, it would not be taxable
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