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lottery/tax Q

Posted: Oct 17, 2009

No I did NOT win the lottery but I was just wondering... If a person was to win the lottery, say about 5 mil, I know that they have to pay taxes when they get the money, but do they have to pay taxes on it every year like an income. Say I won 5 mil and quit my job and let most of it sit in a bank. Would I have to pay an annual tax on that money or would I only have to pay that 1 time when I first got the money? This is assuming I just kept my 5 mil in a regular old savings/checking account, which I would do because I get a good interest rate!

;

Only on the interest income - KYMT#2

[ In Reply To ..]
I believe that after the initial taxation, you would only be required to pay taxes on any income, ie the interest income it would accrue in an interest accruing account.

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