If u win one million dollars how much does the irs take out 4 taxes $Whicka$
The Federal Government (the Internal Revenue Service) takes 25% of any winnings over $5,000 off the top before you receive your check. If you were to take the $1,000,000 in a lump sum, the IRS would take $250,000 so you would receive a check for $750,000. If you opt to take the winnings as an annuity, the 25% comes off each check before you receive it. Additionally, State taxes may also be due, & vary from State to State. Maryland residents, for instance, get hit with a whopping 9.25% State withholding tax.
Updated on Thursday, February 02 2012 at 12:06AM EST