How lotteries are taxed in russia and the united states

Taxes on popular lottery games

Below are the popular lottery games and their tax percentage.

Powerball

When buying tickets in the states: Oregon, New York and New Jersey, the following local tax will be withheld from the amount won:

• Oregon withholding tax is 30% for winning amounts over 600 dollars and 38% for prizes, exceeding 1500 dollars.
• In New Jersey, the IRS collects all prize money, included in the range 600 – 9999,99 dollars, the size of 30%. If the winning amount is 10000 dollars and above, then tax deductions will additionally include about 10,8 %.
• Lottery, bought in New York, implies a tax of 30% for amounts from 600 dollars to 4999,99, and additionally will be withheld 8,82%, if the winning amount is or exceeds 5000 dollars.

Mega Millions

When buying tickets in the states: Oregon, New York and New Jersey, the following local tax will be withheld from the amount won:

• The Oregon Lottery collects 30% for prizes over 600 dollars, and 8% are charged additionally, if the winning amount exceeds 1500 dollars.
• In New Jersey, the taxation process includes 30% from winning amounts from 600 to 9999,99 dollars, and 40,8% - from the amounts, equal or greater 10000 dollars.
• In New York, the tax on lottery winnings in the amount of 600 to 4999,99 dollars will also be 30%, in case of monetary reward, exceeding 5000 dollars - 38,82%.

Lotto

This lottery, includes categories of tax collections of two types:

1. One type of government payment is based on no tax on winning amounts up to 4999,50 dollars.
2. The second category implies deductions in the amount of 44,17% (for non-residents) from all prize funds more than 4999,50 dollars. The levy consists of such taxes: staff, municipal, federal.

Cash4Life

Game, which prizes are taxed in two categories:

1. Prize amounts, which are less than or equal 4999,50 dollars, not subject to taxes.
2. Any winnings over 4999,50 dollars are subject to a tax levy of 44,17% for non-residents of the United States of America, state tax, federal and municipal taxes.

Take 5

Lottery game, winning amounts which are taxed in one of three categories:

1. In one of the categories of winnings, did not reach 599,99 dollars, not subject to tax deductions.
2. All prize amounts for the second category, dollar range 600 – 4999,99 are subject to payment of tax in the amount 30% (for non-residents).
3. The third category implies taxation for non-residents in the amount of 38,82% from all winning amounts, exceeding 5000 dollars.

Playing international lotteries

If you are playing the international lottery online, you, possibly, have to pay taxes. If you use a concierge service (or messenger service), which buys tickets on your behalf, you pay tax depending on where you bought your ticket. If you win the country lottery, in which lottery winnings are taxed, and live in the country, which also deducts a percentage of the winnings, usually, you will have to pay tax once, given that, that the countries have concluded an agreement on the avoidance of double taxation. You should consult with a financial professional, do you meet these conditions.

If you are using a betting service and are betting on the outcome of the draw, but don't buy a ticket, the rules of your country of residence apply.

Types of taxes in the USA

1. Federal income tax. It is paid by employees of companies and corporations, deduction occurs automatically, the amount of the tax fee depends on the salary and on the marital status.

2. State and city taxes.

   Beyond federal income tax, you also need to pay at the place of residence. Benefits vary by state and range from 3-10 percent of income.

3. The property. If you own a house or land, the property tax must also be paid. Each state sets its size, but on average it is about one percent of the average cost of an object.
4. Sales. Trade and income from it are the main taxation system. There are only a few states, in which this fee is not provided: Oregon, Alaska and Delaware. The amount of the fee is calculated individually, each state offers its own system. On average - 3-7% of the cost. However, there are products without this mark-up - prescription drugs.

An example of calculating personal income tax

As Ms Lepshchikova told, to 1 January of this year, bookmakers calculated personal income tax for each player on an accrual basis for the tax period (year). That is, if the player's personal income tax was withheld from the winnings during the tax period, but throughout the year he continued to bet and receive winnings, then when calculating personal income tax for the tax period, the bookmaker summed up all the winnings received, deducted from them all received rates and calculated personal income tax from the amount received, taking into account the previously withheld tax.

Now being specified, what, as mentioned above, only bet amount, являющейся условием конкретного пари, on which the prize fell, to be deducted from the winnings in order to determine the tax base.

PL lawyer gives an example. Let's admit, клиент БК сделал ставку: entered the bookmaker's cashier 1 thousand. rubles. Then the client made two bets with the price of each 500 rubles. As a result, the client won only on the results of one bet, the winning amount was 15 600 rubles.

"To 1 January, the bookmaker would calculate the taxable base as: winnings (15 600) - bet size (1 thousand

rubles) = 14 600 rubles (assuming, that the client made only these two bets for the entire reporting period). Сейчас же с 1 january 2018 the calculation should look like this: winnings (15 600) - price of money (500 rubles) = 15 100 rubles ", - Mrs. Lepshchikova drew attention

According to the lawyer, since the amount of the winnings by example exceeds 15 thousand. rubles, then the bookmaker as a tax agent is obliged to withhold personal income tax, respectively, total amount 1 963 ruble (13% from winning in 15 100 rubles) withheld and transferred to the budget of the Russian Federation.