Illinois lottery taxes?

Would you pay less tax...if you won..$200, a..Private citizen?...or...form a corporation?

would the tax be due...april 15th?...of the same year?....or the next year?

1 Answer

  • pdq
    Lv 7
    9 years ago
    Favorite Answer

    In dreamland where you could win $200K, lottery winnings are treated exactly the same as income.

    You would have taxes removed immediately, just the same as they are if you received a paycheck from your employer. You would reconcile those taxes for that year that you won the money. (In other words, you would pay MORE taxes if you didn't pay enough based on the amount of income you earned that year, or you would get back a refund if you paid too much in taxes that year based on your income.)

    Now WHEN do you reconcile your taxes? Every year by April 15th. Every year by April 15th, we are reconciling our taxes for the previous year's income. If you win a lottery jackpot of $200, that income would be reconciled in the following year's income tax return.

    I don't know anything about corporate tax law. No corporation is foolish enough to waste its money on a fantasy.

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