How to Calculate Florida Lottery Taxes
Once the giddiness from winning money in the Florida Lottery subsides, you'll likely wonder how much of your winnings you get to take home after taxes. According to the Florida Lottery's official website, how much is withheld in taxes depends on the amount of your winnings and your citizenship or resident alien status. Nonetheless, calculating your Florida Lottery taxes is a relatively simple task. Because Florida has no state tax, all that gets withheld is federal tax.
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Instructions
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Determine your tax rate. If you win more than $5,000 and are a U.S. citizen or resident alien who has a Social Security number, the Internal Revenue Service takes a 25 percent cut. Given the same citizenship or resident alien status but winnings of less than $5,000, the IRS does not withhold taxes. Nonresident aliens are required to pay 30 percent of their winnings to the federal government, regardless of the prize amount. U.S. citizens and legal residents lacking a Social Security number have to pay 28 percent if their winnings are greater than $600.
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Use a calculator to determine your tax. While you can also do the math by hand, using a calculator makes this a simpler, speedier process.
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Enter the amount of your winnings. For example, assume you won $2 million. Enter 2,000,000 into your calculator.
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Press the multiply button, which is represented by a small star on many calculators.
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Enter the percentage to be withheld, but move the decimal point to the left of the number. For example, if 25 percent goes to the government, enter .25 into your calculator.
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Press the equal sign button, which looks like two horizontal, parallel lines. The amount of taxes to be withheld will appear. In the example above, the total to be withheld would be $500,000.
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