8 Mar | Posted by admin @ 12:25 AM Category: lotto
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Ok, I just won $888 dollars on the New York lotto “Straight Eights” scratchoff game. I am wondering about how much to expect be taken out in taxes. Also, I am wondering if I’m better off giving them my social security # and claiming the taxes on income tax or just having them take the taxes out right there.
3 Responses to “How much taxes will be taken out of $888 dollar lotto ticket in NY state?”
If you’re in the 0% tax bracket, you’ll pay $0
If you’re in the 35% tax bracket, you’ll pay $888 x .35
I can’t imagine them withholding anything until your winnings exceed $10,000, but I could be wrong.
I believe that when you go and claim your winnings they only take out taxes on the state then you will receive a 1099g to claim it on your federal. all together maybe 200.00 bucks.
The Lottery is required to report and withhold taxes according to the regulations of the Internal Revenue Service and the New York State Department of Tax and Finance.
The current tax withholding rates are:
Required Federal withholding 25%
Federal backup withholding 28%
Federal Non-resident Alien withholding 30%
New York State withholding 6.85%
New York City withholding 3.648%
Yonkers withholding .685%
Legislation was passed that requires the New York Lottery to withhold New York State taxes from taxable prizes over $5,000, regardless of the winner’s place of residence. This law became effective October 1, 2000 and can be viewed at http://www.tax.state.ny.us By law, the New York Lottery is required to withhold past-due child support and prior public assistance received from any Lottery prize of $600 or more.