How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29929
Experience:  Taxes, Immigration, Labor Relations
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

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: 2 years ago.
Category: Tax
Expert:  Lev replied 2 years 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

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.