Tax

Have a Tax Question? Ask a Tax Expert

Ask an Expert,
Get an Answer ASAP!

Tax

If I won the canada lottery how much tax would I have to pay

Customer Question
in the US? and how...
If I won the canada lottery how much tax would I have to pay in the US? and how soon would I have to pay that amount of taxes?
Submitted: 8 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 37 minutes by:
7/23/2009
Tax Professional: The Guy Behind the Tree, Experienced Investor & Financier replied 8 years ago
The Guy Behind the Tree
The Guy Behind the Tree, Experienced Investor & Financier
Category: Tax
Satisfied Customers: 1,387
Experience: Don't tax you, don't tax me, tax the guy behind the tree.
Verified
Has someone recently informed you via email, phone, or letter, that you have won?
Ask Your Own Tax Question
Customer reply replied 8 years ago
Yes I have received a letter and spoken to a live person in regards XXXXX XXXXX winnings
Tax Professional: The Guy Behind the Tree, Experienced Investor & Financier replied 8 years ago
You are almost certainly being set up for the "Nigerian Scam".

***********

DO NOT send any money to claim your alleged "inheritance" or “prize” or to help your new “friend” escape the clutches of evil or move their family fortune. The “costs” will escalate until you stop paying or run out of money.

Do NOT give them any bank account information. You have no IDEA how prevalent this scam is, and how persuasive the presentations are to people who desperately want to believe it is "real". If I actually received the money promised in emails over the last two years I would have a net worth larger than Oprah’s!

http://en.wikipedia.org/wiki/Advance_fee_fraud
http://home.rica.net/alphae/419coal/
http://www.scambusters.org/NigerianFee.html
http://www.ftc.gov/bcp/conline/pubs/alerts/nigeralrt.shtm
http://www.quatloos.com/scams/nigerian.htm
http://potifos.com/fraud/

(Just a few of many exposes of this scam.)

I personally know two people who have disregarded all warnings and have sent money to move or release or claim their windfall. Are they sadder but wiser? NO! Their con men are so good that my people STILL BELIEVE just a little more of their cash will get the funds released.

However, on the INFINITESIMAL chance that you, of all the possible heirs of your totally-unknown-until-now ancestor, or winner of a lottery-you-never-entered, are going to receive an inheritance, or be given a percentage of a family fortune that can only be moved or released with your help and nobody else’s ...

REMINDER: True heirs or winners do not have to send any money to receive REAL inheritances or prizes! Total strangers in other countries cannot defeat evil by sending their money to foreign countries!

... no, an inheritance is not taxable income. Any income taxes, estate taxes, probate costs, and gift taxes are paid by the estate of the decedent.

Lotteries ARE taxable income. But only if you actually get paid. You won’t. If you give them bank account information they will simply use it to take your money from your account.

REPEAT: DO NOT SEND THEM ANY MONEY OR GIVE YOUR BANK ACCOUNT INFORMATION! Read the descriptions of the various scams in the links I have provided above. Do not give your new "friend" or the alleged representatives of your long lost relative any bank account information, they will drain your account when they have what they need.

******

Ask Your Own Tax Question
Customer reply replied 8 years ago
Thank you for that information , however they have not asked for my bank account or any of the above. Once again my question to you is what is the amount that I would have to pay in us taxes and how soon would I have to pay?
Tax Professional: The Guy Behind the Tree, Experienced Investor & Financier replied 8 years ago
When a person wins a lottery - assuming that they actually ENTERED the lottery - there is nothing to talk about. You win, they send you a check (or the first of a series of checks) and that's it.

BUT in the event you are truly a winner, the windfall is taxed at ordinary income rates. If you are a US resident, your federal bracket would be at the maximum rate of 35%.

http://www.moneychimp.com/features/tax_brackets.htm

You would also be liable at the maximum state and local tax rates for ordinary income.

If you are a resident of Canada, your maximum tax bracket would be 47%.

http://en.wikipedia.org/wiki/Tax_bracket#Tax_brackets_in_Canada

If you didn't actually enter the lottery you didn't win. Period.

REPEAT: You didn't win. See here.

http://phoenix.about.com/cs/seniors/a/canadianlottery.htm

http://www.consumerfraudreporting.org/lotteryscamCanadaSoccer.php

http://www.news-reporter.com/news/2009/0205/front_page/002.html

http://www.consumeraffairs.com/news04/2007/11/canadian_lottery.html

The con men are very good. Do not be fooled. Do not give any personal information, do not give any bank account information, do not send any money.

The Guy Behind the Tree
The Guy Behind the Tree, Experienced Investor & Financier
Category: Tax
Satisfied Customers: 1,387
Experience: Don't tax you, don't tax me, tax the guy behind the tree.
Verified
The Guy Behind the Tree and 87 other Tax Specialists are ready to help you
Ask your own question now
Ask The Guy Behind the Tree Your Own Question
The Guy Behind the Tree
The Guy Behind the Tree
The Guy Behind the Tree, Experienced Investor & Financier
Category: Tax
Satisfied Customers: 1,387
1,387 Satisfied Customers
Experience: Don't tax you, don't tax me, tax the guy behind the tree.

The Guy Behind the Tree is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,300 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,310 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

Robin D.

Robin D.

Senior Tax Advisor 4

13,695 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,651 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

R. Klein, EA

R. Klein, EA

Enrolled Agent

1,839 satisfied customers

Over 20 Years experience

< Previous | Next >

Related Tax Questions
This is a question on a UK resident's personal income tax on
This is a question on a UK resident's personal income tax on lump withdrawals of funds in a Canadian RRSP using an example with funds expressed in $CAN. Value of lump sum payment from the RRSP is $100… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,483 satisfied customers
What are the taxes rates 2016 for term gains in irrevocable
what are the taxes rates 2016 for long term gains in irrevocable trusts … read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
736 satisfied customers
My client is a foreign corp in Slovakia with no PE in the US
My client is a foreign corp in Slovakia with no PE in the US and does not want a US subsidiary but would like to hire 2 US persons - what is the best way to do that? … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Suppose my taxable income in 220,000 this year and the tax
Suppose my taxable income in 220,000 this year and the tax rate is X up to 200K, but Y for 200and over, do I pay Y on the full 220K or just that above 200K? … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Dose mean can not deduct state income taxes only or dose it
dose mean can not deduct state income taxes only or dose it includes property taxes too … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Given that the current 1041 tax rate on 401(k) income is
Given that the current 1041 tax rate on 401(k) income is $3206 + 39.6% over $12,400, what will be the new tax rate and will it apply for 2017?… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
Is the sale of customer list a capital gain or ordinary income?
Is the sale of self-created intangibles, such customer lists, digital files, web sites, etc subject to capital gain or ordinary income treatment?… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a question regarding the ordinary income tax. If the
Hello, I have a question regarding the ordinary income tax. If the ordinary income tax due is negative does that apply anywhere? This pertains to the sale of an S corp .business. … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
I (US person) own 50% in a foreign partnership (real estate
I (US person) own 50% in a foreign partnership (real estate partnership under civil law (GbR) in Germany), the other 50% are held by a none US person. - I have rental income from the foreign partnersh… read more
taxmanrog
taxmanrog
Master\u0027s Degree
699 satisfied customers
Estate capital gains tax rate for 61, single, unable to
estate capital gains tax rate for 61, single, unable to work, is claimed as a dependent form sister,only income collects $500 month stipend from gov., which pays for health insurance and meds. is gett… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Client (US resident) with foreign salary and taxes paid in
Client (US resident) with foreign salary and taxes paid in foreign currency - Part II of 1116 form for some reason adds taxes paid only in US $ (line "o" through "r") - it does not take taxes paid in … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Would it be correct to report a foreign cash inheritance as
would it be correct to report a foreign cash inheritance as an initial and final on form 3520? bequest, no trust, will require FBAR now and for some years but the 3520 is mny concern … read more
abci168
abci168
Principal
27 satisfied customers
What would the federal and state tax rate percentages be for
What would the federal and state tax rate percentages be for a $7700 IRA early withdrawal in Ohio?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,483 satisfied customers
What is the income tax rate if it is not withdrawn from the
Hi! What is the income tax rate if it is not withdrawn from the LLC? The owner has not withdrawn any balance from the business all the amount reinvested into the business. Thank you!… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,483 satisfied customers
US FEDERAL INCOME TAX. QUESTION: A SINGLE WOMAN OWNS A
US FEDERAL INCOME TAX. QUESTION: A SINGLE WOMAN OWNS A HOUSE, HER PRINCIPAL RESIDENCE, AND LIVES IN IT FOR 4 YEARS. IN 2017 SHE MARRIES A MAN WHO WILL ALSO USE IT AS HIS PRINCIPAL RESIDENCE BUT NOT HA… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,220 satisfied customers
Has the tax rate on an inheritance for non residents
Has the tax rate on an inheritance for non residents recently been changed? Iv'e been told it is now 5% and no longer 30%.… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,483 satisfied customers
What is the current inheritance tax rate in Mass.? Is the
What is the current inheritance tax rate in Mass.? Is the minimum still $1million? Is that amount likely to change in the near future? (I heard on the TV today that Trump plans to eliminate the Federa… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
13,695 satisfied customers
Federal income tax question to determine if gift taxes are
Federal income tax question to determine if gift taxes are involved. … read more
socrateaser
socrateaser
1,031 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x