Comment Re:Bad Move (Score 1) 21
She won $150K and donated it all.
She still has to pay income tax on $150K, given that the tax deduction on donations isn't 100%.
I'm guessing she does not have the free cash available to pay those taxes either.
She could've "donated it all" which also means "minus taxes". So she donated all her winnings net taxes owed. I think most of these lotteries already withhold 40% of the money and remit as taxes anyways so she probably just gave to charity what she got left.
The IRS takes their cut immediately, even if you're a foreigner. You then have to submit tons of paperwork showing whether or not your country has a tax treaty with the US, at which point they just withhold 25% for taxes. Then you have to submit even more paperwork if you want the last bit (because lottery winnings may be tax free in some countries, like Canada).
I would also guess that perhaps the lottery has the ability to donate a portion of your winnings to a charity of your choice to help bypass some of the paperwork regarding taxes, because it's not unusual for winners to donate a portion of their winnings.