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New Member
posted May 31, 2019 6:03:37 PM

I won $10,000 dollars in the Maryland Lottery and they of course took taxes out for federal and state will I be able to get some of that money back?

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1 Best answer
Level 15
May 31, 2019 6:03:38 PM

That depends upon your overall tax situaiton, including whether enough was withheld to pay the taxes due.

http://www.mdlottery.com/about-us/tax-information/

4 Replies
Level 15
May 31, 2019 6:03:38 PM

That depends upon your overall tax situaiton, including whether enough was withheld to pay the taxes due.

http://www.mdlottery.com/about-us/tax-information/

Level 13
May 31, 2019 6:03:40 PM

Do you live in Maryland, or a nearby state?  If not a resident of Maryland you'll need to file a Maryland non-resident income tax return as well as an income tax return for your state of residence.

New Member
May 31, 2019 6:03:42 PM

I was born and raised in this state and I am 55 years old

Level 15
May 31, 2019 6:03:46 PM

On your tax return, you will calculate the total amount of federal and state income tax you owe for the year, considering all your income, deductions, dependents and so on.  You will get credit for all the money you paid into the system, from wage withholding, estimated tax payments you might have made, and whatever was withheld from the prize (it should be shown on your W-2G).

Then if the total amount you paid in is more than your tax, you get a refund.  If you owe more than you paid in, you have to pay more when you file.

Depending on the amount of withholding, you could easily be short.  For example, if you are in the 25% federal tax bracket and the backup withholding was only 10% or 20%, then you probably didn't have enough taken out.  You may be able to use the Taxcaster to get a federal forecast. https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

Also, very important.  You can deduct your gambling losses against your winnings as an itemized deduction and possibly reduce the tax due.  Gambling losses would be casino losses and all the losing lottery tickets you bought in 2016, assuming you kept records and can prove it.