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If I was to win a lottery and I wanted to share the winnings with others, say 8 others. From a best tax situation, how would one share the winnings with the others? Assume highest tax rate and that I would have 92% of the winnings while the others each gets 1%. I assume gifting it to the others is not the best situation vs. claiming that the others get a portion of the initial winnings?

The state lottery agencies typically withhold a Federal tax amount (I think it's 25% of the winnings). That being the case, I suspect you have to have the allocation documented when claiming from the particular lottery agency, else it is 100% your winnings.

Do I get 1% of this hypothetical prize? ;)


Hohum
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