Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.
The amount of tax on the winnings will depend upon your existing taxable income plus the lottery winnings. Once you have an estimate of that number, we can give you an estimate. Also need your filing status, and number of exemptions.
If I get this monies when do I pay the taxes at the end of the year in April or when I put the monies in the bank?
I am unemployed filing single on social security
That depends upon a number of factors, but the general rule would require you to pay an estimated tax on either 4/15, 6/15, 9/15 or 1/15 of the next year. So when you receive the payment, the taxes are due at the date indicated previously following receipt of the winnings.
So say I get this money in October I should put 38% in a savings account to pay the 2011 taxes 4/15.
If that's your tax bracket, you would need to make the payment by 1/15/2012 for 2011.
so do I file 2 claims one on the winnings and one as a normal filing
where do I find my tax bracket?
No. Only 1 tax return per person. In the instructions for Form 1040 is where the tax tables or tax rate schedules are located.
okay am totally lost but thanks for your help
What don't you understand? You seemed to be following right along.
As I told you if you give me the numbers, I can give you a rough estimate.
winnings of 926, pounds
just need to know what to do with the certified check when it comes
did not want the IRS to be waiting at the door
is the bank responsible for contacting the IRS when I deposit the monies?
If your only income is social security, and you actually won 926 lbs, there would be no income tax due. However, make sure you aren't being "scammed". Do not send the lottery any money in order to claim your prize.