Question about taxes for Ohio Pick 4 winnings

Reply #13

chazwick — Thu, 01 Jan 2015 19:13:57 GMT

Thank you so much for the detailed answer. I appreciate that. It's only partly a gift. We worked it out now. Thanks for all the info, definitely helpful. And no public assistance. It should be alright, but we will see tomorrow.

By the way: Happy new year, everybody

Reply #12

grwurston — Thu, 01 Jan 2015 18:14:20 GMT

Click on the USA MEGA on the left side. Scroll down to MM FAQ's. Click on that and scroll down till the question about taxes comes up. It will tell you how much each state takes out.

Reply #11

Ron5995 — Thu, 01 Jan 2015 10:07:33 GMT

At 15% rate, $375 will be due to the Feds. If you (or the friend, if they claim it) work another job, it's likely an excess has been withheld over the course of the year that would likely cover most, if not all, of the additional $375. Typical tax refund for many is well over $1,000.

Ohio tax is a little more tricky to calculate exactly, but figure on it being around 4%; around $100. Total tax due between state and federal being around $475 at 15% and 4% rates, respectively...

If one's fed... [ More ]

Reply #10

darthfury78 — Thu, 01 Jan 2015 06:45:50 GMT

The best thing that you could do is go the the Ohio lottery HQ. They will tell you what needs to be done. If you take your winning ticket to them, they will cut you a check with the taxes taken out.

Reply #9

chazwick — Thu, 01 Jan 2015 06:16:47 GMT

Thank you, Stack47.

Reply #8

Stack47 — Wed, 31 Dec 2014 23:15:28 GMT

The part I wanted to clarify then is whether the other 31% also applies, even though the amount is under $5000, because it is more than 300 times the wager.

If you won $5000 that amount is added to whatever other income you had for the year and then you're taxed on that total income. How much depends on your tax bracket. Federal and state taxes are withheld from winnings over $5000, the total win is added to your income, and the taxes withheld are applied as any ordinary income tax.

Reply #7

chazwick — Wed, 31 Dec 2014 20:01:38 GMT

I did indeed read your reply completely. Thank you. I just don't have the greatest understanding of taxes I guess. From what I had read elsewhere, it implied that the 25% and 6% withholdings were separate from the income tax (%15 in this case), which I understand, and which you confirmed, is paid as regular income. The part I wanted to clarify then is whether the other 31% also applies, even though the amount is under $5000, because it is more than 300 times the wager.

I get that it's t... [ More ]

Reply #6

RJOh — Wed, 31 Dec 2014 19:44:55 GMT

Did you not read my reply completely? Who ever claims it will have to pay taxes on it as if it was regular income.

The only exception I can think of is if you have a dependent child in college who claims it and has no income other than those winnings, you can still claim him as your deduction and he probably won't owe any taxes when he files his tax return.

Reply #5

chazwick — Wed, 31 Dec 2014 18:36:03 GMT

Thanks much, RJOh! So the 25% (federal) and 4 or 6 % (state) withholding doesn't apply here then right -- I'm having somebody else claim it for me, and I'm trying to get a sense of how much to give them (I was going to give them some, aside from tax amount, anyways). But obviously, I want to make sure they don't have to pay the taxes on it themselves. Otherwise it's a pretty useless gift.

And no, it's not to avoid paying child support, alimony, back taxes, or any other debt.

Thanks,... [ More ]

Reply #4

RJOh — Wed, 31 Dec 2014 17:03:26 GMT

In my county, winning a lottery prize larger than $600 is a big deal and seldom happen so even if the one bank that is approved to process those claims had a scanner it would be seldom used. Besides it's the retailer that sold the ticket that gets the commission so he should be the one helping the winner fill out his claim.

Reply #3

RedStang — Wed, 31 Dec 2014 15:43:37 GMT

I wonder if our Banks do that. They should install ticket scanners.

Reply #2

RJOh — Wed, 31 Dec 2014 15:30:09 GMT

You can cash winning tickets worth $600 to $5000 at a local approved bank with a claim form and a voucher from your local retailer proving your ticket is a winner. The bank won't take any taxes out of your prize but will take their fees for processing your claim. You will later get a W-G form from the state showing your winnings as earned income and you will pay taxes on it at the same rate as all your other income.

Reply #1

destinycreation — Wed, 31 Dec 2014 14:43:34 GMT

In most states, when you fill out a claim form and submit it to your state lottery commission, they will take State taxes out, off the top. As for federal taxes, why can't you just add $2500 in with your regular yearly earnings, and take 15% taxes off the top, like normal ???

Did Ohio give you a $2500 check, to deposit in the bank ?? Don't You have to wait for clearance, unless you have enough in your bank account to cover the check, on the front end

Question about taxes for Ohio Pick 4 winnings

chazwick — Wed, 31 Dec 2014 07:45:07 GMT

Hi everybody. First time reader, first time 'caller'. I am new here, and stumbled across the forums while searching for an answer. I keep finding conflicting information or, as tax-related information tends to be, unnecessarily convoluted.

I hit the Pick 4 (Ohio) tonight 50 cents straight. That's a $2500 pay-out. I've only been playing the lotto for about 7 months and prior to this, the best I did was a few 50 cent box hits on the 4 and the 3, and a $500 instant prize.

What I've... [ More ]