If you missed it over the weekend, a 50-year old computer technician made a halfcourt shot and won $75,000 at the Heat/Pistons game. Not only did the guy win $75K, but LeBron James tackled the guy with excitement. Hilarious, you can watch it HERE.
Well now that the excitement has died down, reality kicks in and that starts with Uncle Sam. SMH. Check out how much Michael Drysch will have to pay in taxes….
“A lot of people don’t realize: You don’t win what you win,” said Robert Raiola, an accountant with FMRTL in Cranford, N.J., whose clients include athletes.
It’s not something Drysch was unaware of. When asked Friday night on NBA TV what he would do with the money, Drysch responded, “Give the government half.”
Well, at least it won’t be that much. Drysch’s prize is a lump sum based on that $75,000 number, but IRS regulations stipulate that 25 percent of the prize must be withheld for federal income tax.
That leaves Drysch with a check of $56,250 ($22K in taxes). Then consider the fact that he is a resident of Illinois, which will take out a 5 percent state tax on the prize, regardless of income.
His winnings now are $52,770. A representative for Carmex confirmed the basic accounting. Whether Drysch will owe any more in tax will depend on how much he earns in 2013.
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