Can pretax lottery winnings be donated to charity?
Can pretax lottery winnings be donated to charity in the US simultaneously creating a deduction of the taxable lottery winnings and putting pretax proceeds to a productive cause?
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The lottery commission will withhold tax, typically, 25% federal.
For large sums, the millions people dream of winning, the problem lies in that you can't deduct more than 50% of MAGI as a charitable deduction. So, the year you win, say, M, you can donate M, and keep M but have a tax bill on that M.
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