To: Hambone 1934
Doesn’t the lottery or state take half????? No. It's just treated as ordinary income, for federal and state tax purposes. 37% is the top marginal tax rate for federal taxes, and I don't know about michigan state income tax rates, but they are usually only a small fraction of federal rates. When all is added up, it's probably close to 40% deducted.
5 posted on
12/21/2022 1:42:51 PM PST by
fwdude
(Society has been fully polarized now, and you have to decide on which pole you want to be found.)
To: fwdude
A number of states, yes even CA, do not impose state tax on lottery winnings. I don’t know if MI does or not
6 posted on
12/21/2022 2:25:49 PM PST by
j.havenfarm
(22 years on Free Republic, 12/10/22! more then 6500 replies and still not shutting up!)
To: fwdude
Wouldn’t that trigger AMT on fed taxes?
7 posted on
12/21/2022 2:35:54 PM PST by
ProtectOurFreedom
(If you're not part of the solution, you're just scumming up the bottom of the beaker!0)
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