Have a Tax Question? Ask a Tax Expert
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.
can you clarify what exactly do you mean under "pct" ?
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
So a part of your income is taxes at 10% - another part at 15% and so on - up to the maximum rate 39.6%
Please be aware - that is just a rough estimation..
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.
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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!
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.