Ok, just to clarify. Let's say that your yearly income puts you in the 15% tax bracket after AGI. When you go to file, adding the winnings as other income, and creating a new AGI (yearly income + winnings - deductions) puts you in the 25% tax bracket, would this then become your new bracket?
And if so wouldn't this effectively be taxing the winnings twice since taxes were already withheld when the winnings were claimed?
