If I win $40,000.00 tax free in a Michigan Lottery on April 15,2013 (income tax deadline) what is the real win?
I make about $40,000 dollars (between Social Security and a Ford Motor Pension) and I wonder if I won $40,000 tax free what the real amount of the winning would be?
makes me wonder
The deal with the Michigan lottery is the state bills me and the lottery makes up the difference
why would I pay anything if the state pays my tax?
this is kind of confusing
where do you get the 15% tax?
Thanks anyway ROB
do we now ROB Peter to pay Paul?
my name is Paul ~by the way
how do this thing work?
WOW! THREE TOP CONTRIBUTORS
I guess its that I BELIEVE THE state of Michigan
when they say I will win this$40 grand tax free
maybe in the end the Federal Gov't and social security will get their 30 pieces of silver
the state of Michigan has a TAX FREE
The$40,000.00 top prize is NET of STATE and FEDERAL TAXES on the gross
so many people answered that I MUST
pay a tax..this tax information is advertixed for the March 15, 2013 drawing~the day the income taxes are due
- BobbieLv 77 years agoBest Answer
Not free of federal income tax at all I would guess about 20% in your case during the 2014 tax filing season and if they withhold FIT of 25% as estimated advance taxes for you to be able to use as a tax credit during the 2014 tax filing season for the 2013 tax year then you MIGHT be able to qualify for a REFUND of some of the withheld tax amount providing that you are have some amount of FIT withheld out of your pension and SSB amounts or you may want to calculate and make some estimated tax payments during the 2013 tax year to make sure that you do not owe a whole lot during the 2014 tax filing season. 03/31/2013
- Cathi KLv 77 years ago
Some states do not charge taxes on winning the lottery in your own state. Federal is still taxing.
- troLv 77 years ago
if you win $40K and your other income is $40K, you will be taxed on the total amount, probably at least 85% of your SS will be taxable
the lottery may not be taxable to Mich as a state lottery, and with that adjustment you would be taxed on your other income
some states do not tax SS so it might boil down to your pension for Mich is all you are taxed on
- chatsplasLv 77 years ago
Lottery winnings are NOT tax free
State does withholding, but you have to file a tax return to determine tax owed
Just like regular job, employer does withholding, but you have to dfields tax returnSource(s): Tax pro
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- RobLv 77 years ago
u still need to pay federal of 15 % at your rate.