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That doesn’t represent an exemption or a non-taxable amount, it is the threshold above which a W-2G must be issued. It is the same as the $600/threshold for issuing a 1099 in most circumstances.
It is important to remember that not receiving a W-2G (or a 1099) doesn’t mean that you don’t owe tax.
I agree with you, and the post you quoted didn't say there was a $600 exemption. It is indeed a threshold for reporting.
I agree with you, and the post you quoted didn't say there was a $600 exemption. It is indeed a threshold for reporting.
Hmmm. . . Let’s see:
Quote:
Originally Posted by City Guy997S View Post
A. Most of the time Powerball and MegaMillions are below 100 million. Coincidentally right now they are both 300mm+ and this is one of only a few times they both have been so large.
B. Some states don't have income taxes at all, some pass on charging income tax on lottery winnings. The Federal Govt. does tax all lottery winnings over $600. Lottery officials withhold 25% instantly but you are on the hook for the full 39.6% plus the 3.8% Obamacare tax (assuming jackpot win exceeds 400K or so). So the tax rate is 43.4% of any jumbo jackpot.
Canada does not tax lottery winnings.......
The highlighted portion is pretty clear - it’s a claim that $600 is the threshold for Federal tax. And that is incorrect. All lottery winnings are taxable at the Federal level.
The highlighted portion is pretty clear - it’s a claim that $600 is the threshold for Federal tax. And that is incorrect. All lottery winnings are taxable at the Federal level.
My mistake, at $600 they give you a 1099.....making the winnings taxable unless you show a loss.
The highlighted portion is pretty clear - it’s a claim that $600 is the threshold for Federal tax. And that is incorrect. All lottery winnings are taxable at the Federal level.
The context was clear to me. If you want to play wordsmithing games with the person who wrote that, have it. I'm sorry I responded.
The context was clear to me. If you want to play wordsmithing games with the person who wrote that, have it. I'm sorry I responded.
You really thought that the following quote was actually talking about the requirement to issue a W-2G, and that is consistent with the context of the rest of the post?
No wordsmithing games going on, just Reading 101.
Quote:
The Federal Govt. does tax all lottery winnings over $600.
Was at my local convenience store the other day and this raggedly looking guy in front of cashes in a scratch card from a $10 winner and the machine recording says "You are a winner" Then the guy,who has the appearance of a person who has not done well in life,buys $50 worth of Powerball tickets.
They should program the machine to say "You are a loser"
Was at my local convenience store the other day and this raggedly looking guy in front of cashes in a scratch card from a $10 winner and the machine recording says "You are a winner" Then the guy,who has the appearance of a person who has not done well in life,buys $50 worth of Powerball tickets.
They should program the machine to say "You are a loser"
Didn't we all learn "don't judge a book by its cover" back in grade school? Looks can be decieving.
I buy a lottery ticket ($2.00) nearly every time I go to the grocery store. So...that would work out to a little over $100 a year.
I promise, if I saved that $100 for even 10 years, $1000 isn't enough to go to Disney World.
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