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How do you claim winnings from a state lottery?
If someone wins $6,000,000 in a state lottery and takes the lump sum option of $3,000,000 do they need to claim $6 million as taxable income or just the $3 million they received?
7 Answers
- conley39Lv 73 years agoFavorite Answer
The $3M that they accepted is taxed in that case but the tax will be paid in on year. The $6M would be paid out over several years and taxes would be paid on the amount distributed in each year.
- Jay PLv 73 years ago
If you buy a car that has a retail price of $20K on it but you bargain it down to $18K, do you pay tax on what you actually paid or the suggested retail price of the vehicle?
The same goes with lottery winnings...
- Anonymous3 years ago
I believe you don't need to claim it on your taxes.... The taxes were Already taken out. They already took 3 million dollars out for taxes. But you can confirm with the lottery office.
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- Anna ELv 73 years ago
You would only claim the $3 million received. The person WILL receive a statement at tax time indicating the amount of winnings they must report.