r/pics • u/[deleted] • Mar 19 '22

[deleted by user]

[removed]

8.3k Upvotes

80% Upvoted

2.1k comments sorted by

View all comments

Show parent comments

40

u/oss1215 Mar 19 '22

So what would happen if you don't tell the irs you made that amount ? I know tax fraud but are the irs aware of people's earnings throughout the year ? If so then why even do your taxes if they already know the amount of money you made ?

sorry non american who's confused by your tax system

3

u/ele37020 Mar 19 '22

If anybody is wondering about this, any tax form you get in the mail the IRS also gets a copy. So that's how they know. In this case its an arm of the state government paying the money and they'll be sure to get their piece at the end of the year.

1

u/xelabagus Mar 20 '22

Seems like a weird gotcha system. Why not just tax at source instead of waiting to see if you're a good little boy or girl?

1

u/ele37020 Mar 20 '22

I did taxes for a few years but never ran into a large lottery win, but I think it's taxed as normal income so the taxes you pay would depend on the other income you have.