Gambling winnings tax in the USA

[acroman08]

so recently I saw a news circling around the internet regarding someone from the US winning the lottery jackpot worth $1.28Billion, but then several days later, I saw this article. apparently the winner of the Lotto jackpot will only get $433.7M after the total amount of winnings is taxed. it's ridiculous how the government got more money from the lotto jackpot than the actual winner. I know that $433.7 million is still a lot of money but it is still disheartening how $800 million was taken away due to tax.

https://www.forbes.com/sites/robertwood/2022/07/30/winning-128-billion-lottery-ticket--gets-4337-million-after-tax/?sh=5582ea32028d

[Beparanf]

Gambling taxes is really works like that but I’m not sure about the exact rate because it’s always subjective. Lottery just don’t include the word tax free to make the jackpot prize huge but  this is the reality on the US. The winner still got the huge part and he will still pay that tax if the lottery company give the whole prize because IRS will surely questioned the sudden increase of that person money.  

[mindrust]

Gambling taxes is really but I’m not about the exact rate because it’s always subjective. Lottery just don’t include the word tax free to make the jackpot prize huge but  this is the reality on the US. The winner still got the huge part and he will still pay that tax if the lottery company give the whole prize because IRS will surely questioned the sudden increase of that person money. 

There is nothing subjective about tax rates. There is probably a bracket of tax rates depending on your income in the US. It seems to me you just don’t know them.

It is not surprising to lose most of your gambling profits especially when the amount is as high as a billion goddamn dollars. That’s treated as income and taxed like how they tax income.

Since they tax the rich more and the poor less and a person that has a billion mother fucking dollars income is definitely rich, of course they will tax the shit out of him.

Being rich aint easy.

[Jemzx00]

Unfortunately, that's how taxation works on USA. Even with the massive amount that the person won on the lottery, he will never receive the full amount and most of it will be on state and federal taxes. Also, as much as I know the winner will have a choice whether to receive his winnings on one lump sum payment which will be much lower but he will receive it on one payment or it will be on a 15 year contract where he will receive a much higher winnings but it will be paid yearly.

[Beparanf]

Gambling taxes is really but I’m not about the exact rate because it’s always subjective. Lottery just don’t include the word tax free to make the jackpot prize huge but  this is the reality on the US. The winner still got the huge part and he will still pay that tax if the lottery company give the whole prize because IRS will surely questioned the sudden increase of that person money. 

There is nothing subjective about tax rates. There is probably a bracket of tax rates depending on your income in the US. It seems to me you just don’t know them.

It is not surprising to lose most of your gambling profits especially when the amount is as high as a billion goddamn dollars. That’s treated as income and taxed like how they tax income.

Since they tax the rich more and the poor less and a person that has a billion mother fucking dollars income is definitely rich, of course they will tax the shit out of him.

Being rich aint easy.

Yeah, I really don’t know the exact tax rate mechanism on US about gambling that’s why I leave it as subjective as my opinion. Thank you for additional information about the bracket system on tax.

This is the consequence of getting the wealth in shortcut, The winner will charge huge tax in short cut, It looks like that he was being ripped off but this is what actually happening on rich people that paying tax for there huge income.

[cabron]

The article says he was liable for gifting and then lost in the Tax court. IRS can be unforgiving. The police are even afraid of the IRS agents, these are untouchables. But then anyway, she is a waitress and I think $433.7M is more than enough for her to start a new life even if  she giveaway half of it. I just hope she spends the money for good.

With $433.7M, there are so much options now as to where to go. Or find a country where taxes aren't so hurtful.

[molsewid]

so recently I saw a news circling around the internet regarding someone from the US winning the lottery jackpot worth $1.28Billion, but then several days later, I saw this article. apparently the winner of the Lotto jackpot will only get $433.7M after the total amount of winnings is taxed. it's ridiculous how the government got more money from the lotto jackpot than the actual winner. I know that $433.7 million is still a lot of money but it is still disheartening how $800 million was taken away due to tax.

https://www.forbes.com/sites/robertwood/2022/07/30/winning-128-billion-lottery-ticket--gets-4337-million-after-tax/?sh=5582ea32028d

That's too sad to the winner , but that's life we all know that taxes that are implied to gambling is kinda big compared to other businesses and other things, because government can really use this taxes  to many things. We need to get used to it  even though it is very sad that we need to pay a large number of money.

[fortunecrypto]

so recently I saw a news circling around the internet regarding someone from the US winning the lottery jackpot worth $1.28Billion, but then several days later, I saw this article. apparently the winner of the Lotto jackpot will only get $433.7M after the total amount of winnings is taxed. it's ridiculous how the government got more money from the lotto jackpot than the actual winner. I know that $433.7 million is still a lot of money but it is still disheartening how $800 million was taken away due to tax.

https://www.forbes.com/sites/robertwood/2022/07/30/winning-128-billion-lottery-ticket--gets-4337-million-after-tax/?sh=5582ea32028d

The tax mechanism is quite complicated it's like legal robbery, the winner here is the government and they made it their cash cow, yes you've won a huge amount and they announced it but they should announce also the government as the real winner here that's half of the money, here in our country its only 20% and you can have it lump sum or installment, every lotto bettor should know and understand it, it's hard to take that huge tax cut people will think that you actually won that amount.

[Zackgeno96]

Nowadays you have to pay tax on gambling winnings everywhere. It is only calculated very crookedly, because it is per month I read somewhere. If you would win $10,000 in March then you would have to pay 28% tax and if you would lose $9,000 in April you would think you would have $1,000 net, But you can't report the losses to the government so keep the net you then 10,000 - 2800 - 9000=-1800
A loss of 1800$ when you would actually be 1000$ in profit. There are also a lot of players who choose not to declare taxes, but then you have to be able to justify your money somewhere of course. This differs per country, however. Isn't there also a distinction between online gambling sites and a land-based casino?

[Doell]

I am curious then I just checked count income at https://smartasset.com/taxes/ smaller our income = smaller the tax, mindrust said is right "Being rich aint easy." $10 million in revenue taxed a total of around 52.54%, gambling taxes maybe higher than usual but it looks like it's worth it, with the funds received. But honestly it's too big, we should get a net or at least $1.1 billion, and tax borne by casino .

[YOSHIE]

If I'm not mistaken, I've read the tax rates imposed on individuals and gambling companies in the US, with the sound as below.

Changes in personal tax rates are expected to increase the participation of Americans in gambling, this will bring immediate benefits to the makers of gambling machines.

Like what happened to Australian poker machines operating in the US, they had to pay a tax of 36%, for that I think what happened to that person was a regulated taxation that had to be paid on lottery jackpot wins....!

Even so, my assessment of the gambling winnings tax that has been set is too large, this in my opinion sucks.

[coin-investor]

so recently I saw a news circling around the internet regarding someone from the US winning the lottery jackpot worth $1.28Billion, but then several days later, I saw this article. apparently the winner of the Lotto jackpot will only get $433.7M after the total amount of winnings is taxed. it's ridiculous how the government got more money from the lotto jackpot than the actual winner. I know that $433.7 million is still a lot of money but it is still disheartening how $800 million was taken away due to tax.

https://www.forbes.com/sites/robertwood/2022/07/30/winning-128-billion-lottery-ticket--gets-4337-million-after-tax/?sh=5582ea32028d

That's too much if you're betting for 20 years and you got that huge tax cut you will feel a little disappointed because the cut is just too huge, but at least you've won that huge amount and get the satisfaction of one of the few people who have won a lottery, if you got a huge cut like that you will still feel good if your government is doing a lot on the taxes people are paying, but if the government is corrupt you will feel sorry and disappointed for that huge cut.

[pawanjain]

so recently I saw a news circling around the internet regarding someone from the US winning the lottery jackpot worth $1.28Billion, but then several days later, I saw this article. apparently the winner of the Lotto jackpot will only get $433.7M after the total amount of winnings is taxed. it's ridiculous how the government got more money from the lotto jackpot than the actual winner. I know that $433.7 million is still a lot of money but it is still disheartening how $800 million was taken away due to tax.

https://www.forbes.com/sites/robertwood/2022/07/30/winning-128-billion-lottery-ticket--gets-4337-million-after-tax/?sh=5582ea32028d

Even I saw this news on the internet a few days back and I was awe struck when I read that the government will be getting more than half of the lottery amount as tax.
Although $433 million is not a small amount and should still be good after tax deducted but it feels like this is not fair.
Why is the government taxing so much, it's almost around 67% in tax which sounds ridiculous to me.

[Boristhecat]

so recently I saw a news circling around the internet regarding someone from the US winning the lottery jackpot worth $1.28Billion, but then several days later, I saw this article. apparently the winner of the Lotto jackpot will only get $433.7M after the total amount of winnings is taxed. it's ridiculous how the government got more money from the lotto jackpot than the actual winner. I know that $433.7 million is still a lot of money but it is still disheartening how $800 million was taken away due to tax.

https://www.forbes.com/sites/robertwood/2022/07/30/winning-128-billion-lottery-ticket--gets-4337-million-after-tax/?sh=5582ea32028d

This tax looks like a clear fraud. I wish I could see at least one person ready to justify this. This raises the question - if we (ordinary people) elect our representatives to power, then how is it that the laws in force work against us? It seems to me that if democracy worked, we would never see such absurd news.

[crwth]

Congratulations to the winner, it's really a great thing to see someone winning something like that amount. Having been able to accumulate that kind of jackpot money is still just seems that it's even more hurtful or over with taxes. It's definitely sad but still coming home with that amount is still life changing. There's no doubt about that. It really sucks but at least you still won. You still should be thankful with that

[KTChampions]

~But then anyway, she is a waitress and I think $433.7M is more than enough for her to start a new life even if  she giveaway half of it. I just hope she spends the money for good.

With $433.7M, there are so much options now as to where to go. Or find a country where taxes aren't so hurtful.

The question is not what the money won will be enough for and how large this amount is. In any case, this tax looks like a robbery. It turns out that if you evaluate this shit in terms of gambling, this lottery has an house edge of about 70%  I wonder if anyone would agree to play dice with such an house edge? Or in slots with an RTP of 30%?

[Oshosondy]

Gambling taxes is really works like that but I’m not sure about the exact rate because it’s always subjective. Lottery just don’t include the word tax free to make the jackpot prize huge but  this is the reality on the US. The winner still got the huge part and he will still pay that tax if the lottery company give the whole prize because IRS will surely questioned the sudden increase of that person money. 

The winner still won millions of dollars that he can venture into business to give returns even in billions of dollars, but the tax is too much though, the tax is like two third of the money won while the winner only took one third. But that is United States, the more someone gets higher income, the more the money that will be taken as tax, that is why the rich people in US pay more tax in percentage than people that are not rich.

[Gozie51]

That is really a big hit of money from jackpot but unfortunately the funny part is that large part of it is donated to the US government through taxing  . The system in America regarding tax and in fact many other aspects favours the less wealthy because they have a system that deduct more from the rich or money that is coming as income. I think that kind of taxing could be progressive taxing where tax is based on income. Well the winner still has something left, he should understand this before the winning.

[Newlifebtc]

Gambling taxes is really works like that but I’m not sure about the exact rate because it’s always subjective. Lottery just don’t include the word tax free to make the jackpot prize huge but  this is the reality on the US. The winner still got the huge part and he will still pay that tax if the lottery company give the whole prize because IRS will surely questioned the sudden increase of that person money.  

From the country i came from nobody as for any tax for gambling. Government don't disturb for gambling, i believe that it is the source of them getting money. From my the way I'm seeing my own way it's not good for somebody to pay tax for gambling, except it is a country that rely on the taxation. My country were i from nothing like that.

[Oilacris]

Gambling taxes is really works like that but I’m not sure about the exact rate because it’s always subjective. Lottery just don’t include the word tax free to make the jackpot prize huge but  this is the reality on the US. The winner still got the huge part and he will still pay that tax if the lottery company give the whole prize because IRS will surely questioned the sudden increase of that person money. 

The winner still won millions of dollars that he can venture into business to give returns even in billions of dollars, but the tax is too much though, the tax is like two third of the money won while the winner only took one third. But that is United States, the more someone gets higher income, the more the money that will be taken as tax, that is why the rich people in US pay more tax in percentage than people that are not rich.

Snipping out 2/3 on the overall winning amount is just a disaster but there's no  choice for the said winner yet he would be still getting 400m+ which still big but its just too unacceptable on how much tax

or the deduction on overall amount. 50% might considerable but almost 2/3? How the hell they do make out such thing yet i've seen some country based lottery does have tax-free when it comes to winnings

Well, this is USA's laws about taxation then it is really just sad to those people who do win up specially on lotteries or even into those basic taxes been applied in all  sorts.