If you play the Florida lottery, your first intention like that of all people is that you can win, then considering the prize you start to make plans, because it is assumed that by winning an interesting amount of money you can, for example, buy the house of your dreams, and even depending on the amount of that prize you are likely to think about buying several apartments.
However, without the intention of discouraging you, before making those plans, you should think that if you win you will end up receiving much less than what that prize indicates, greater due to the withholding of the taxes that you will have to pay, you know how much you will pay and how much money you will receive from that prize? You will know it below …
How much tax do I pay if I win the Florida lottery?
If you won the florida lottery, the Internal Revenue Service will estimate the amount of what you have won and your status, so that later you receive your prize deducting the corresponding taxes, then:
- If you are a foreign resident living in the United States or a United States citizen and you won a prize that exceeds $ 5,000, you will have a federal withholding of 24%.
- If the lottery prize is $ 5,000 or less, that amount will not be taxed.
- But if you are a foreigner residing in the United States and you do not have a Social Security number, your award will have a federal withholding of 24% as long as the value exceeds $ 600.
- If you are a foreigner but not a resident of the United States, your prize will have a retention of 30% regardless of the amount of the prize you have won.
All this is because when it comes to resident aliens or US citizens who obtain a profit that reaches 600 dollars, the Florida lottery is required to report that profit to the Internal Revenue Service.
As for lotto games, if you play and win you will also have withholdings, for example:
- If you are a foreigner residing in the United States or a United States citizen and you have your Social Security number, on the prize you win, as long as it is more than 5000 dollars, you will pay 24% as federal internal tax.
- If you won the lottery in Florida and you are a resident foreigner but do not have a Social Security number, you will have a withholding on a prize of $ 600 or higher, of 24%, that is, it is the same federal withholding percentage that indicates the IRS but calculated on a different amount of the award.
- If you are a foreigner or resident, you will have a federal withholding of 30% regardless of the amount of the prize you have won.
Florida lottery in spanish
- The florida lottery withholds federal income taxes on a prize in cash and even when the payment of the prize is annual, because in this case the taxes are withheld when the payment is made.
- As a foreign resident or if you are a US citizen and have your social security number, if you win a prize worth more than $ 5,000, the federal tax indicates a 24% withholding.
- But with the same status, that is, as a US citizen or as a resident alien, if you win the lottery, Florida considers that if you win a prize that is $ 600 or more, you will also pay a 24% tax.
- If you are a non-resident alien, you will pay 30% federal tax calculated on the value of any cash prize you win.
- As a US citizen or as a resident alien who wins a prize of $ 600 or exceeds this value, you will pay 24% calculated on the $ 6,500 or more depending on the prize you won.
Federal income taxes
According to the Tax Foundation, an independent research organization, Florida has for decades been the state with the lowest percentage of taxes or tax rates in the United States for both businesses and residents.
Since it does not have income tax, it is considered the state with the lowest tax burden, it lacks these taxes because it is prohibited by the state constitution, but it does have federal income taxes.
State income taxes
Florida seems to be a paradise of sun, beaches, shopping centers, Disney Word and a lot of tourism as its economic activity, for this reason and due to the prohibition of its constitution it does not charge state income taxes, but it does charge other types of taxes such as:
- When you buy a house in Florida, you must pay the ad valorem tax that is annual and calculated on the taxable amount of that property. It is a tax collected by the county, but it is likely that you qualify for the homestead tax exemption, for this reason it is best that you obtain the information by contacting the tax authority that corresponds to your county.
- If you obtain income in Florida as an artificial, real or corporate entity even if these businesses are carried out outside the state, you will be charged corporate income tax. You will only qualify for an exemption from this tax if you formed a trust, if it is a property of a deceased or if you formed an individual company. The tax is calculated on federal taxable income.
In these cases, you will file the corporate income tax return with form F-1120 and you may even be eligible for corporate tax incentives or community contribution tax credits.
You should also know that if you formed a non-profit organization, company or corporation that is always non-profit, you will have to pay some taxes, for this reason, to remember to pay all the taxes that correspond to you, you should check with the website of your county because you They will charge the property tax.
- They also charge you a 6% sales tax, called a use tax. When you buy you do not pay sales tax, but at the time of purchase including catalog purchases, whether you order by phone or by mail, unless it is used products with an age of 6 months, then that product will not be subject to use tax.