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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29528
Experience:  Taxes, Immigration, Labor Relations
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I won $10000 from the Massachusetts state lottery. When I

Customer Question

I won $10000 from the Massachusetts state lottery. When I redeem my ticket, the state and federal government will take a percentage right away. How will the additional $10000 in income affect my tax return? My husband and I file jointly and earn around 80-100k annually
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Hi and welcome to out site!
Several issues to discuss.
First of all - the gross amount will be reported as your taxable income and added to other taxable income.

Your tax liability would be based on your marginal tax rate.

With 80-100k gross taxable income - most likely you are in 15% or 25% tax bracket - dependuing on your deductions.
See tax rate schedule here

http://taxfoundation.org/article/2015-tax-brackets

Massachusetts state income taxes are extra 5.2%.
The amount withheld will be credited toward your tax liability - very similar to withholding from wages.

So - if withholding is more than your total tax liability - you will be entitled for a refund.