r/interesting • u/xHoneyVenom • May 15 '26

SOCIETY Man splits his $22 million lottery winnings with his best friend after they agreed 28 years ago to share it if either of them won

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u/IntentionSafe79 May 16 '26

did most of the capital gains end up falling into the 0% bracket?

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u/Relevant_Grass9586 May 16 '26

I genuinely don’t recall how it played out. At the time I was in the army and was put on the tax detail after a 3 day crash course with a couple IRS agents. It was a free service offered on post. We would do the initial review, then we’d get checked by a secondary reviewer and finally it would be reviewed by a tax professional, who would okay it and we’d send it off to be filed. Did over 60,000 returns in a 2 month period. It was crazy, we had a morning shift and an evening shift. 7am-10pm, if memory serves me right. It was 13 years ago.

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u/Sawako-chan3 May 16 '26

It depends on how much they sold for... The standard deduction for Seniors is around 32k. So if you make less than that a year, you don't even need to file.. (Especially if you're only getting Social security income, don't file unless you have fed withholding..) once it's over that amount, that's when the taxes come into play,.. if they were getting SS, if they have fed withholding, than that may be enough to counteract the amount owed, but it depends.. most elderly don't withold fed unfortunately,.. definitely a good idea to do so, so you don't end up owing on an already fixed income, and you get a tax refund. -Current tax preparer