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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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I t a 682,000 ***** ***** pot at the casino, I am on SSD,

Customer Question

Customer: hi I hit a 682,000 ***** ***** pot at the casino, I am on SSD, How much will I have to pay to uncle sam
JA: Thanks. Can you give me any more details about your issue?
Customer: I live in the state of florida
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Submitted: 11 months ago.
Category: Tax
Customer: replied 11 months ago.
Hi how long do I have to wait?
Customer: replied 11 months ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Customer: replied 11 months ago.
To whom it may concern: Why is this service taking so long?
Expert:  Lev replied 11 months ago.

Hi and welcome to our site!
First of alll - congratulation with your winnings!

Unfortunately - that amount will be included into your taxable income.
In additional a part of your social security disability benefits will become taxable - so please provide your annual benefits.
Your tax liability will be based on your filing status - Single or Married - please provide?

Another issue - you will be able to deduct all your gambling losses - please verify the amount of gambling losses you had during 2015.

Customer: replied 11 months ago.
How much is the pct?
Expert:  Lev replied 11 months ago.

can you clarify what exactly do you mean under "pct" ?

Customer: replied 11 months ago.
the percent? how much does uncle same take?. How will I have to pay around?
Customer: replied 11 months ago.
thank you for the Congrats
Expert:  Lev replied 11 months ago.

There is no a single flat percentage rate.
The tax liability is calculated on the gradual tax rates - based on TAXABLE income - after all deductions - see the tax rate schedule here

http://www.bankrate.com/finance/taxes/tax-brackets.aspx

So a part of your income is taxes at 10% - another part at 15% and so on - up to the maximum rate 39.6%

Expert:  Lev replied 11 months ago.

Please be aware - that is just a rough estimation..

Expert:  Lev replied 11 months ago.

That is just a rough estimation -of your expected federal tax liability - it would be ~$240,000.

I did not account for your social security disability benefits and did not account for any deductions.

So you actual liability might be more or less - but is an amount you might want to keep aside to cover your taxes.

.

I appreciate if you take a moment to rate the answer.

Experts are ONLY credited when answers are rated positively.

If you still have any doubts, need clarification - please be sure to ask.
I am here to help you will all tax related issues.

.

Happy New Year for you and your family!

Customer: replied 11 months ago.
I wanted to also bring to your attention, that I won some and lost lots more in 2011, I did more losing then wining. I was misinformed by many saying that you don't have to worry about taxes, since you have more loses then wins. The casino has my lost reports, but the left a lot of blanks of unreported loses. I failed to file for 2011 taxes and 2012-2013-2014. And I have all my bank withdraws, this includes all my proof photo copies and more. So I will like to make amends with uncle Sam for the left out years. I am not a tax expert, I just feel that I spend countless hours taking risk with my life to try and hit my money back, as we all know the house never loses, all they do is take. Well thank GOD I was able to come close to recovering most of my monies on this jackpot. Please respond. Thank you in advance.
Customer: replied 11 months ago.
Keep in mind that I am disabled. I have no job no income, just a luck win.
Customer: replied 11 months ago.
I also contacted SSD, and they informed me that they have no part in my win. They congratulated me and informed me that I am on the clear. They informed me that if I decided to return to work, then I will have to inform them of my earnings.
Customer: replied 11 months ago.
The Casino informed me that I don't have to take a lump sum, That I can chose option 2 to receive over 39000 for the next 26 years. or option 1 for a discounted lump sum payment of 684000. But I will have to pay out of the 684000 to Uncle Sam. I ask the casino I hit for over 1mil - 20,000, what are you guys doing with the other 300000 +, they called it a discounted rate lol. I informed them that you should be paying Uncle Sam with the extra 300000 +, seem like the casino is trying to stiff me with option 2 lol. But I don't have to sign. I may just stay with option one, this way I collect most of my wins.
Expert:  Lev replied 11 months ago.

Your social security benefits will not be affected - winnings is not earned income - and you will continue to receive all benefits you are entitled.

But these benefits will be partly taxable because you have large taxable income.

So you will need to add your social security benefits to your winning on your tax return.

On the other hand - you do may deduct gambling losses - and that would be VERY important to keep record of all your losses.

For each previous years - you will separately report winnings and losses.

You may not combine thee into one tax return - we need to report each year separately.

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