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Please clarify. Winnings from what?
i won a scratch ticket for 10,000 from mass lottrey.is there a certain age for not paying taxes if your a certain age?
I won a 10,000 scratch ticket mass. lottery
You are required to pay taxes on gambling winnings at any age - both federal and state.
On winnings over $5,000, Massachusetts automatically withholds 25% for federal tax and 5% for Massachusetts tax.
i am disabled on social security does that matter?
Your total income will determine how much is taxed when you file a tax return. It is possible if your income is very low, you will receive a refund of the taxes withheld. If your only income is Social Security, it is likely you will end up getting a refund of most of the taxes when you file a tax return because you should have very little income.
If you file a Schedule A (itemized deductions) with your taxes and have gambling losses, you would be able to deduct those to offset the winnings. For 2011, you need to have total itemized deductions of at least 5,800 or 11,600 if married to itemize deductions. Other itemized deductions include things like charitable contributions, property taxes, and mortgage interest.
Even if you are on Social Security disability, you still need to pay tax on your lottery winnings.
I make only 15,000 a year 200. away from poverty level. Can i claim 10,ooo in losing tickets as a write off?
With only 15,000 in SS + 10,000 winnings none of your social security income would be taxable (if 1/2 of SS + your other income is less than 25,000 if single, you don't pay tax on SS), so your only income would be 10,000. In 2011, you get a standard deduction of 5,800 + a 3,700 personal exemption to offset your taxable income, for a total of 9,500.This would mean only 500 of your income (10,000-9,500) would be taxed anyways, for a total tax of $50 at tax-time.You could claim 10,000 in losing tickets as a write-off, but I think at your income level that could possibly raise a red flag with the IRS, so you maybe better off just paying the $50 in tax.
I don,t understand tHAT 50. DOLLARS!
If you only have taxable income of $500, you would be in the 10% tax bracket, so 500 * 10% is $50.
Do you understand now or still need more clarification?
MY WINNINGS OF 10,000 WOULD SEEM TO BE MORE THAN 50. DOLLARS
i NEED to know if 10,000 dollars would the taxes be 1,000?
You would only pay $50 of tax when you filed a tax return.When you cash out your winnings with the Lottery, you will receive $7,000. This is because 25% (2500) in federal tax and 5% (500) in Massachusetts tax is taken out. $3,000 in taxes will be taken out when you claim your winnings.When you file your tax return, you would only $50 in federal tax, so would get a refund of $2450. On Massachusetts, your tax would be about $300 when you file the return, so you would get a refund of about 200 from Massachusetts.
In short, you will have $3,000 in taxes taken out of your $10,000 check, but will get about $2,650 of that back in a refund when you file your tax return. So, really you are paying about $350 in tax.
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i understand now thank you