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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10814
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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My sister won 1.3 mill in a lottery in Fl. She took a one

Customer Question

My sister won 1.3 mill in a lottery in Fl. She took a one time payment. Is she still responsible for tax's annually on the money she received, being she was taxed, taking the one time payment...
Submitted: 8 months ago.
Category: Tax
Expert:  Lane replied 8 months ago.

Hi

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No the tax is only on any income received ( lottery winnings are income) during a tax year.

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If she is not RECEIVING any payments in future tax years, there will be no taxes in those years.

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She WILL have to report on her 2016 income tax return .. but the taxes that were withheld from the winnings will offset what's owed dollar for dollar.

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(She will not be taxed twice)

Expert:  Lane replied 8 months ago.

Please let me know if you have any questions at all.

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If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the faces or stars on your screen, and then clicking “submit")

JustAnswer will not credit me for the work unless you do.

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Thank you!

Lane

I have a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986

Expert:  Lane replied 8 months ago.

Hi,

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I’m just checking back in to see how things are going.

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Again, no she will only be taxed once - for the year received.

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Did my answer help?

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Let me know…

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Thanks

Lane