On my tax return it carried the $5,000 over to my state but I have already paid $200 state tax up front. The lottery office gave me a check for $4800 and they said it was to pay the state tax. On my state tax form it shows $5,000 added in my income. Was I taxed on that $5,000 again?
Yes and No, The statement says $5,000 because that is what you won and what needs to be reported to the IRS. So you will pay taxes on the full $5,000 to the Federal just like you did to the state.
You are not being taxed twice by the state as you are receiving a credit for that $200 paid towards what you would owe the state. However, if the $200 was not enough withheld when added to the rest of your income you may need to pay any additional amounts due. Just be sure to enter the $200 paid when entering your W-2G.
Yes and No, The statement says $5,000 because that is what you won and what needs to be reported to the IRS. So you will pay taxes on the full $5,000 to the Federal just like you did to the state.
You are not being taxed twice by the state as you are receiving a credit for that $200 paid towards what you would owe the state. However, if the $200 was not enough withheld when added to the rest of your income you may need to pay any additional amounts due. Just be sure to enter the $200 paid when entering your W-2G.