what would the taxes be on the 250,000 dollars a year for life winnings?
They normally automatically withhold 25%..Most winnings like that are paid 25% quarterly. So every quarter you get $62,500 minus $15,625 for federal taxes plus what ever is required by state taxes. Depending on filing status and other income you may get a refund when you file.
- Max HooplaLv 78 months ago
It depends on what the tax rates are going to be.
If you are single, no kids, no deductions, no other income, the federal tax would be about $58,423
There is no FICA tax since this is not considered "earned income"
State & local tax could be anywhere from 0 to 10% depending where you live. So worst case would be about $25,000.
So in a high tax state you'd pay a total tax of about $83,000 (assuming a 10% rate for state & local taxes), leaving you with $167,000 free & clear after taxes each year. In a state with no income tax you'd pay just under $59k federal tax leaving you with $191k free & clear after taxes.
If you won this prize you'd want to spend a few thousand bucks hiring a tax planning attorney to help you find legal ways to reduce your tax bill.
- martinLv 78 months ago
about half for a single person
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- STEVEN FLv 78 months ago
The same as for the same income as wages.
More information is needed to determine that actual taxes in any one year, and future changes in tax law would apply to payments received after the changes.
- AmyLv 78 months ago
Federal: $58,424 if you're single, $42,493 if that's a married couple's income, or less if you have any deductions (such as children).
State: depends on the state, probably around $12,000.
- oldprofLv 78 months ago
Figure roughly 42% Federal, State, and local taxes combined. So you're disposable income would be around $145,000 each year. That's $105,000 per year in total taxes.
- ?Lv 48 months ago
Mark said it, the tax rate is 39.6% for anything resembling winning's.
- Anonymous8 months ago
Depends if you pay state taxes (some states exempt lottery winnings from state tax — they found winners were leaving the state). But ballpark 40%. A state like California more like 45-50%.