Mega Millions has states excited about tax windfall

Winner winner! That’s right a double winner!

The potential winner for the Mega Millions tickets being sold in stores (or online in  Illinois), isn’t the only one hoping for a winner.  The state where that resident lives is also hoping to celebrate a potential winner and huge tax windfall.

With the jackpot over the record $540 million, some state governments, who have been struggling as well, are anxious to see if there is a hometown winner who could bring a little tax windfall.How much of the lottery will the state receive? 

A tax windfall on winnings like that could be in the range of tens of millions of dollars that could aid in revenues which could assist social programs or even encourage new jobs.

Each state sets its own tax rate on lottery winnings and they range from 0% to 8.82% in New York.

Many states have budget needs between $20 to $60 million and that would be a huge lift for a state in need.

Even though you may not win the Mega Millions, in case you are playing the lottery, we want you to be prepared for Uncle Sam.  Make sure you keep your receipts of losses for tax time.  You can report those losses to deduct off of your winnings.

Until we see you next, best of luck and happy playing!

PS…it is almost April 17th and your taxes are due!!

 David Rocci 

 

Disclaimer: Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.

 

Posted To: Tax Rants by David Rocci By: David Rocci On: Friday, March 30, 2012
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