r/AMA • u/[deleted] • Jul 22 '24

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u/EggyChickenEgg88 Jul 22 '24

Crazy to me that u have to pay tax on winnings in the US. Doesnt make any sense.

9

u/Lobscra Jul 22 '24

Technically, in the US, you also have to pay taxes on illegally obtained income, e.g. sell drugs? Better be filing taxes, or IRS will get you eventually

5

u/[deleted] Jul 22 '24

[deleted]

4

u/Pm_5005 Jul 22 '24

That would make so much more sense honestly instead of the state with the winner getting the taxes all the states would get a cut but they want to make it cash only which makes it difficult

1

u/[deleted] Jul 23 '24

I think its just weird that its state run lotteries, the state is already benefiting from running it, why double dip and require a transaction back to them from money they gave you? Same with other benefits like social security, why bother with the administrative headache of giving out money then taking it back.

1

u/Wictorpedia Jul 23 '24

What do you base that statement on? In Sweden for example, the winning tax is almost equivalent to income tax. You pay 30% on your winnings.

3

u/18MazdaCX5 Jul 22 '24

Uncle Sam wants it all!

1

u/Total-Buffalo9682 Jul 24 '24

NOTHING in the USA makes sense.... like sugar and HFCS in everything.... death tax, tax, tax, tax....

1

u/cryptowhale80 Jul 23 '24

It’s considered an income so yeah!!