a friend of mine won $40K+ on the "bad-beat" jackpot playing poker in atlantic city over the weekend. do you guys know how much in taxes he is going to be paying or how much the gov't usually takes?

 

I think lottery winnings are something like 40% when it all boils down.

BTW they should give him the form to sign when he claims his winnings so he should know on the spot.

 

yeah it works out pretty close to 50%. 45-47%

 

If I ever won that much I would send about 50-55% straight to the gov't so if anything I get money back from it and not spend all my winnings.

 

The way I see it since it is "income tax" and I don't earn my living playing the lotto, gambling etc. I shouldn't have to pay "income tax" unless I am a professional gambler and that is my sole source of income.

 

tell that to the people who've gone to jail for not paying it.

 

I'm not advocating not paying the tax at present but that's the way it should be viewed, buying lottery tickets is not a means of earning money, nor is gambling yet they are subject to "income taxes" and the first line that asks about money on the tax form Line 7...Wages, salaries, tips, etc. attach form W-2. The only way would be to declare lottery tickets as an investment vehicle and then tax it as capital gains but then you could deduct all your losing tickets from income....

 

Hey, I'm not disagreeing.

 

i understand tax, but some of the stuff they tax is ludicrous. let me enjoy my monies damn it.

 

Yes he should have recieved a tax form right after he won...on top of that the casino would send him an end-of-year win-loss statement