How much will a Goshen California lottery winner take home after taxes?
You will receive a Form W-2G from the payor showing the amount of lottery winnings paid to you during the year and the amount of federal income tax withheld. (This information also gets sent to the IRS by the payor.) You must give the payor your Social Security number. The payor might use Form W-9 to request this information from you. If you fail to give the payor your Social Security number, 31% will be withheld. If state income tax withholding is required, the amount of state income tax withheld might also be shown on Form W-2G. Estimated taxes Since your federal tax bracket can go as high as 39.6%, which is well above the 28% they will withhold for large winnings, the amount of tax withheld from your lottery winnings might not necessarily be enough to cover your tax bill. On top of your regular tax liability, you could be assessed an additional penalty for failure to make estimated tax payments during the year. Thus, you might also have to make estimated tax payments in advance. For
