Taxes
- Thread starter shipman
- Start date
TXtourplayer
Executive Member
Depends
If your from out of the country, yes they take it out before you get yours.
If your from the U.S., they don't take them out unless you ask.
The amount can vary that is owed, based on the winners other deductions.
I hope this year I can find out personally all these problems, but I still have to get there first...LOL. I would love to have this problem to worry about.
If your from out of the country, yes they take it out before you get yours.
If your from the U.S., they don't take them out unless you ask.
The amount can vary that is owed, based on the winners other deductions.
I hope this year I can find out personally all these problems, but I still have to get there first...LOL. I would love to have this problem to worry about.
Shipman, You would be money ahead to take all the money without prepaying taxes, put it in the bank or other investments you are comfortable with and make quarterly estimated tax payments without any IRS penalty. Your CPA can advise you of quarterly tax payments due or you can contact the IRS for a worksheet to self calculate quarterly estimated taxes. Keep the money as long as you can, the IRS doesn't pay interest for early payment of taxes.
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Springbac
Member
Quarterly Estimate Tax Payments
If you are already making quarterly tax payments, they are based on the previous years income. So long as you make those payments, you do not have to increase your quarterly estimate if you have a big win. There will be no penalty for the current year, but next year your extimated tax payments may increase.
If you are already making quarterly tax payments, they are based on the previous years income. So long as you make those payments, you do not have to increase your quarterly estimate if you have a big win. There will be no penalty for the current year, but next year your extimated tax payments may increase.
Uncle Sam gets his first
In the case of the Hilton Million that’s $250k off the top.
Gambling winnings have their own rules and tax form (the dreaded W-2G). For table games, if the winnings are at least 300 times the wager and more than $5000, withholding at a rate of 25% is required; you have no choice.
Here’s a link to the appropriate page on the IRS site: Form W-2G Instructions
Of course, come next April you'll pay a bit more. The top tax rate is 35%, all your exemptions are phased out to zero, your itemized deductions are limited, and the Alternative Minimum Tax applies. Is this a great country or what? :laugh:
In the case of the Hilton Million that’s $250k off the top.
Gambling winnings have their own rules and tax form (the dreaded W-2G). For table games, if the winnings are at least 300 times the wager and more than $5000, withholding at a rate of 25% is required; you have no choice.
Here’s a link to the appropriate page on the IRS site: Form W-2G Instructions
Of course, come next April you'll pay a bit more. The top tax rate is 35%, all your exemptions are phased out to zero, your itemized deductions are limited, and the Alternative Minimum Tax applies. Is this a great country or what? :laugh:
mdbjII-man
New Member
nope, uncle sam has to wait
Nothing is withheld from the $1,000,000 at the Hilton. You get a choice of cash (which they will not convert to a check) or Casino chips (which they will convert to a check), those 10 racks of $1000 chips have a good feel to them. In my case Uncle is going to have to wait until 4/14/05 to get his. If you are making quarterly estimated payments, 110% of your last years tax liability during the big win year avoids a penalty.
Nothing is withheld from the $1,000,000 at the Hilton. You get a choice of cash (which they will not convert to a check) or Casino chips (which they will convert to a check), those 10 racks of $1000 chips have a good feel to them. In my case Uncle is going to have to wait until 4/14/05 to get his. If you are making quarterly estimated payments, 110% of your last years tax liability during the big win year avoids a penalty.
TXtourplayer
Executive Member
Confirmed
I guess last years Million Dollar winner should know. Eric did they send you W-9 or WG-2 or another type of tax form from the Hilton? I know WSOB sent us W-9 forms.
I guess last years Million Dollar winner should know. Eric did they send you W-9 or WG-2 or another type of tax form from the Hilton? I know WSOB sent us W-9 forms.