You should have listed the $100,000 as a prize (income) and the $40,000 as withholding. This would probably be on a W-2G form (gambling) although it might have been on a 1099-MISC. The income adds to your other income and your total tax is calculated. The withholding is added to your other withholding and payments, and if your total tax is less than your total payments, you get a refund.
40% tax is a little high, but it depends on your other income and your state income tax. Under some circumstances, 40% might even be low. (In the highest tax bracket and the highest state tax, you would pay up to 36% federal tax plus 3.9% net investment tax plus 13% state income tax, for a total of 53% tax.)
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