Lottery Winnings
By patgalca
@patgalca (18481)
Orangeville, Ontario
March 11, 2008 6:05pm CST
In Canada when we win money as a prize on a game show or lottery or whatever we do not have to pay taxes on it. I know that in the U.S. winners do have to pay taxes when they win on game shows. But how much? My husband seems to think that they have to pay 50%. That means if someone wins $100,000 on a game show they really only get $50,000.
Can someone settle this question for me? What percentage do U.S. citizens have to pay in taxes when they win money?
4 people like this
8 responses
@lordwarwizard (35747)
• Singapore
12 Mar 08
Looks like you won some money, congrats.
Over here, I believe it is tax-free.
I am not sure if you are a canadian who won a us lottery. I would think it differs from state to state.
The easiest would be to ask the lottery company.
@patgalca (18481)
• Orangeville, Ontario
12 Mar 08
Lord, no! I didn't win any money. It's just everytime we watch a game show my husband says, "Well, they're only going to get half of that as the rest will go to the government." So I wanted to clarify whether that was true or not. Next time he says it I will just tell him it's not true, that it depends on their tax bracket and most of these people on game shows are in desperate need of money so probably don't get taxed 50%.
4 people like this
@lordwarwizard (35747)
• Singapore
12 Mar 08
Well, then I think it is time you win something! Go get a ticket.
3 people like this
@Fishmomma (11658)
• United States
12 Mar 08
It depends on your income and its the reason you will never see me on a game show. This is why I always suggest people that don't have a job go on a game show. Also students as why go into debt when you can win the money and use it to pay for school.
@foxyfire33 (10005)
• United States
12 Mar 08
I'm going to agree that it varies. Another discussion at the bottom of this one told a story about a New York (state) man that won $10,000 in the lottery but had to give up 1/2 to the state because he was a former 'workfare' recipient. Once he paid that and the taxes he was left with just over $1,000...so assuming he paid $4,000 in taxes that comes out to 40% so your husband's opinion is pretty close on that one.
3 people like this
@drknlvly6781 (6246)
• United States
17 Mar 08
We have to pay regular income taxes on winnings over $300 dollars. And no, that is not %50!!! I forget what the percentage is, somewhere around 10-15%, but its nowhere near %50, that I can assure you.
