How does winning state lottery affect my income tax?
I am an 18 year old student. My aunt bought a winning ticked for the florida Play-4 lottery, $800.00. She asked me to use my information to cash in the ticket. When I did, i received a W2-G form, and it said total income $800.00 with no taxes taken out of it. How will this affect when I file for my regular income tax next month? Thank you in advance.
- Anonymous1 decade agoFavorite Answer
So...your aunt did some tax evasion by sullying your good name.
If you are a student with $0 earned income, you won't owe tax as the first $900 isn't taxed.
if you are a student with, say, $2000 of earned income, you will owe $50 since your standard deduction will only cover the first $300 of it. Mention this to your parents and ask them how they feel about your Aunt's borrowing your name and SSN.
- 1 decade ago
Lottery winnings are taxable! When the Play-4 Lottery sent you form W2-G they also sent notification to the IRS that you received this income. Therefore the IRS will be expecting you to include this on your income tax return as taxable income. This is one area where many people get into trouble with the IRS by not including their winnings as income. The IRS eventually catches it and sends the taxpayer a bill (IRS Notice CP2000) for the difference along with penalties and interest. Just be sure to report it!Source(s): http://www.irs.gov/individuals/article/0,,id=12538... http://www.effectur.com/taxsolutions/default.aspx
- travelguruetteLv 61 decade ago
You will add 800 to your total income and pay taxes if you have any tax liability. I am not sure about Fl but in CA state lottery is not taxed only for Federal
- acmeravenLv 71 decade ago
Line 21 on form 1040; other income, 1099G/winnings. Totaled in with other income. If you are a student and your parents take your dependency but you are employed and get a W-2 form for wages you can reduce your total income by the standard exemption amount of $ 5,450 and what is left is what you pay tax on.
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- TimLv 71 decade ago
You will have to add the $800 to your total income to determine taxes at the end of the year.
- 1 decade ago
You must report the $800 as income in addition to whatever you made yourselfSource(s): pers. exp.
- 6 years ago
- NMLv 51 decade ago
You will have to report the winnings on your 2008 tax return, and most likely, if no taxes were paid on it, then you (or whomever) will have to pay taxes on the winnings.
- Anonymous1 decade ago
Depends on your income level. If you made under $8150, you will owe no tax if you add $800 to that at the federal levelSource(s): I am an accountant
- golferwhoworksLv 71 decade ago
you will pay the taxes on it as income as it will be added into your earnings to be taxed