Question #135719. Asked by endoverend.
Last updated Oct 09 2016.
Originally posted May 07 2014 1:43 PM.
How much you have to pay depends on certain factors. One is whether or not your state charges an income tax. Seven states don't charge income tax, so if you win a game show while living in one of those states, you'll be in better shape. Second, what tax bracket will you fall into after winning your money? If you win a game show, you might make a considerably higher amount than your annual salary. This new injection of cash could then put you in a higher tax bracket.
Let's say you won $25 million in the lottery in New York City. City and state taxes add up to 12.7% (rounded up to the nearest tenth). Add 25% for Federal taxes, which comes to 37.7% or $9.4 million that you will have to pay in taxes. This is also true for winnings from a game show. The only difference with the lottery, again, comes down to the state. Certain states do not tax you for lottery winnings, such as California. If you live there you can expect to only pay Federal taxes. So there you would only pay 25%, or $6.25 million in taxes."
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