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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.)
Do you have a question? You have not provided us with enough information to comment on whether you should have received a refund for any of the tax withheld from your winnings. Who is "they" who took out the $40K? You have not told us how you won that money, nor have you told us anything else about any of the other income -- if any--that you received, or anything regarding your dependents, etc. etc. etc.
If your 2022 federal and state tax returns were done correctly, then your winnings and the associated tax withholdings should have been accounted for.
No one here can see your tax returns. If you're not sure that your 2022 returns were done correctly, then you may want to bring them to a local tax professional for review. It's not too late to amend a 2022 return if there were errors.
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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