what is the tax liability on california lottery winnings?
346694
hi hows it goin.....saw you had no answers and i wanted to make you feel loved. have a great day.
515159
Liability for personal income tax rarely depends upon who is paying the income.  Your liability to California will depand upon how much of the work you do there and how much you do in Nevada.  I am also a Nevada resident working in California part of the time, and I prorate my salary based on the days I spend in and out of California.  \n\nI don't know how California would treat a Nevada LLC -- they might just disregard it -- but I do not think you can save any tax that way.  You are more likely to get yourself into a mess.\n\nAgain, where your 1099 comes from is not relevant.  What matters is where you do the work.
1011847
If you did not actually enter the lottery and got an email or postal mail that you won, it's a scam. You gotta be in it to win it!\n\nNo matter how legitimate it sounds, don't fall for it. You'll probably find that before you can claim your "prize" you have to give them a "processing fee" or some such fee. When you pay the "fee" to get your money, you'll find that the company disappears.\n\nIf you still aren't convinced, then stay in contact with them. Don't give them ANY personal information-- no bank account numbers, social security numbers, not even your phone number. See how long it takes for them to ask you for money!
1147220
Yes, gambling winnings are fully taxable.  Here's info from the IRS:\n\nGambling winnings are fully taxable and must be reported on your tax return. You must file Form 1040 (PDF) and include all of your winnings. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair market value of prizes such as cars and trips. For additional information, refer to Publication 525, Taxable and Nontaxable Income. \n\nA payer is required to issue you a Form W-2G (PDF) if you receive certain gambling winnings or if you have any gambling winnings subject to Federal income tax withholding. All gambling winnings must be reported irrespective as to whether any portion thereof is subject to withholding. in addition, you may be required to pay an estimated tax on your gambling winnings. For information on withholding on gambling winnings, refer to Publication 505, Tax Withholding and Estimated Tax. \n\nYou may deduct gambling losses only if you itemize deductions. Claim your gambling losses as a miscellaneous deduction on Form 1040, Schedule A (PDF). However, the amount of losses you deduct may not be more than the amount of gambling income you have reported on your return. It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. Refer to Publication 529, Miscellaneous Deductions, for more information.
68714
He can deduct up to the $3000 winnings, if he can document his losses:\n\nFrom the IRS web site: \nYou may deduct gambling losses only if you itemize deductions. Claim your gambling losses as a miscellaneous deduction on  Form 1040, Schedule A (PDF). However, the amount of losses you deduct may not be more than the amount of gambling income you have reported on your return. It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. Refer to Publication 529, Miscellaneous Deductions, for more information.
124569
Actually the most likely thing is that the people took the ticket to a lawyer and a CPA. Most people with winning tickets do this. There is a LOT that needs to be done legally to secure the money, etc.
583826
my home church.\nthe high school scholarship in memorial of my wife (a teacher).\nhospice care and/or cancer research.\nanimal shelter.\nmy college fraternity.\n\nGood, thought provoking question...  When thinking of lottery winnings, I usually think of paying off stuff and/or taking vacations.  Looking at it from this angle is more like 'paying-it-forward'...  Thanks.
395358
If you really do have big winnings - as in life-changing - then you should have a lawyer and a financial advisor.  They will tell you where to pay taxes.\n\nI can't see why it would be hard to figure this out, though.
1157959
I got an email like this that was a scam. If you win a lottery they will not contact you like that. You can report the site but I can't remember the site I reported mine to but just type in scam lotteries and you will be directed to many sites. Just give them all the info you can.  Be carefull of your email.
661587
Probably is. Just like lottery winnings are. They aren't earned income, but they're income.
495
Well as a rule of thumb the up-front cash payout is typically around 30 to 33% of the total winnings due to interest and taxes.  [use 1/3 as a quickie rule].  Each state will be different.\n\nFigure if 10 people are sharing 10 million in cash, each person should get somewhere around a million, give or take a couple hundred thousand.  Oh and dont forget a little money paid to a lawyer for the innevitable problem when non-family members have to fight about splitting up money.
306225
Indian Casinos have agreements with their state governments to operate. These are negotiated, and in CA are called Compacts.  \n\nWhile the terminology may not include the term "Tax" the following excerpt from the referenced article demonstrates that fees in lieu of taxes are paid. \n\n"The state expects to collect up to $7 million a year from the two casinos under a graduated scale that starts at 10 percent of the net win from slot machines. Neither tribe is expected to approach a $200 million annual net win at which the state's cut would top out at 25 percent. The same fee schedule has been included in other recent Schwarzenegger compacts."\n\nNo, Indian Gaming isn't getting a free ride, and it is raising the living standard in areas that were previously supported by tax collections.
238873
"the lottery is a tax for people who cant do math."\n\nyou cant, and, odds are, that you never will.\n\nyou have a better shot at being struck by lightning.\n\ninstead of buying lottery tickets, invest in stocks.  you have infinitely better chances of making your money work for you there than you do in the lottery
1135699
That depends.  If it was your principal residence, and if you lived in it for 2 out of the last 5 years immediately prior to the sale, then you may exclude up to $250,000 ($500,000 if married filing jointly) in gain from federal taxes.  Excess gains are taxed as capital gains, as is the entire gain if you don't meet the ownership, residency and/or occupancy conditions.\n\nCA law may vary on that.  Consult a tax advisor in CA for full details.
335003
Instead of doing this research - spend an equal amount of time and a couple dollars (far less than you will ever waste on the lottery) and buy a basic statistics book.  By chapter 2 you'll understand why government lotteries are known as an ignorance tax.  \n\nYou quickly understand that if tickets were sold for even a $0.01, you're still getting a royal screwing every time you buy one.   \n\nDon't focus on the one guy who won.  Focus on the tens of millions that lost and you'll see how ridiculous it is to play.  \n\n2 last points \n1) A perfect example is Vegas.  The overall house margins are just a few percentage points and look at the cost of the casinos they build with the house winnings - The properties alone cost Billions of dollars.  Compare a few percentage points in Vegas with that of your typical government lottery (the odds of winning are less than 1 in 14 million in Florida\n\n2)Ever wonder why you only see the poor or the working poor playing the lottery and never see the guy driving the Porche in the business suit buying a handful of tickets.  The "educated" guy in the business suit understands the lottery is for SUCKERS who don't know any better.
518446
Lotteries are a tax on people who aren't good at math.  Lottery software is double taxation.  You can't improve your odds of winnning something based on probability, no person or software can predict the future or better your odds.  The best way to win at lotteries is to keep your money.
918
You didn't say what the penalty was for (late filing, late payment, interest, trust fund penalties, etc.). Nor did you state who is handling your dispute (IRS Appeals, Collection Due Process, Tax Court). There's slightly different rules depending on what's going on.\n\nThe basic process for handling penalties and disputes is outlined on the IRS website.\n\nIn general, the IRS will investigate whether you are responsible for the penalty, and will send up a notice informing you that the penalty was waived or that you really do owe the penalty. Interest will accrue if you really do owe the penalty, but you haven't paid it yet.\n\nGenerally, I advise my clients to pay all penalties in full, and then dispute the penalties. This shows a good faith effort, and stops additional penalties and interest from being added to the account. If we lose the dispute, at least the client paid only the penalty and not additional interest. If we win, the client gets his money back.\n\nI hope this helps. Let us know how your dispute with the IRS turns out.\n\nBest wishes.\n\nWilliam