The Arkansas lottery: The taxman cometh in more ways than one | Arkansas Blog

Wednesday, September 3, 2014

The Arkansas lottery: The taxman cometh in more ways than one

Posted By on Wed, Sep 3, 2014 at 10:04 AM

click to enlarge imgres.jpg
The Arkansas Lottery, working on its somewhat bruised image, compiled a release yesterday on the $1 million in unpaid taxes and child support it has collected from lottery winners in its five years of existence.

That prompted some questions from me about when the withholding kicks in and also the take in state and federal income tax from big winning tickets.

Patrick Ralston provided the rundown:

First, any winning ticket over $500 is checked against the state database on taxes and past due child support computed by the state support collection agency. The lottery withholds from winnings if the debt is $100 or more.

Income tax withholding is required on all prizes of $5,000 or more. In five years, the tax take:

* State income tax: $9.4 million.

* Federal income tax: $34.1 million.

This is on top of an average of about $100 million a year in college scholarships from lottery profits (a figure that has declined sharply in recent years.)

Tags: , ,


Sign up for the Daily Update email
Favorite

Comments (2)

Showing 1-2 of 2

Add a comment

 
Subscribe to this thread:
Showing 1-2 of 2

Add a comment

More by Max Brantley

Readers also liked…

  • A response to police arrests becomes a tutorial on race, class and policing in Little Rock

    John Walker, the 79-year-old civil rights lawyer, and his associate, Omavi Shukur, 29, a young lawyer devoted to criminal justice reform, talked to press this afternoon about their arrests Monday by Little Rock police for supposedly obstructing governmental operations in observing and attempting to film a routine police traffic stop. It was a tutorial on sharp views of race, class and governance in Little Rock.
    • Sep 29, 2016
  • Latest Obamacare repeal bill would hit Arkansas treasury hard

    The latest effort to undo Obamacare, the Graham-Cassidy legislation, would shift federal support for health coverage to a block grant system to the states. Bad news for Arkansas.
    • Sep 18, 2017
  • Donald Trump declares war on Hillary Clinton's marriage

    Donald Trump gave a remarkable interview to the New York Times yesterday in which he declared open season on the marriage of Bill and Hillary Clinton and Bill Clinton's past infidelity. Seems like a loser, but I've been wrong before.
    • Oct 1, 2016

Most Viewed

Most Recent Comments

Slideshows

 

© 2018 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation