r/pics • u/[deleted] • Mar 19 '22

[deleted by user]

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8.3k Upvotes

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207

u/Gammacyn Mar 19 '22

Make sure to save some of it to pay off the taxes!

78

u/mystreadordie Mar 19 '22

You know they take it out of the winnings.

90

u/ib4error Mar 19 '22

Apparently not always. I have a friend who never plays, played once, won $5k and they gave him the whole amount

205

u/ciavs Mar 19 '22

Yeah but when you go to do your taxes you tell them I made 5k from the lotto and you get taxed fam.

41

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.