I know that there is nothing that you can do about the cash payout amount being less than the advertised amount, but is there anything that you can do for me tax-wise?”“Unfortunately, No. Most people hope there is something people like me can do to help them to significantly reduce the amount of tax they have to pay in the tax year they collect their winnings. I can help you to a certain extent, Carl, but there are significant limits.“I recommend contributions to an Individual Retirement Arrangement and charitable contributions to most people to get them into a lower tax bracket. For you, an IRA contribution would reduce your Adjusted Income slightly, but there is a maximum annual contribution limit for IRAs, and at your income level, that maximum won’t help you. Charitable donations could also put you in a lower tax bracket, but I doubt you would want to give away over ninety percent of your winnings in order to drop into a lower tax bracket.”“No way, Bill. I doubt that I have ever. It was Saturday morning and Kelly was busy doing her yoga when Kathy burst into her room with an excited look on her pretty face. "Oh my God Kelly! You will not believe what happened!"Kelly turned off her yoga DVD and narrowed her eyes at her sister. "What?" Mark asked me to go away with him this weekend!" And you said no right?"Kathy smiled wickedly."Right?" Well... not really, I said I'd go but that I had to be back early tomorrow morning."Kelly sighed. "Kat, you are really asking for trouble." Kell, would you cover for me?" No." Please!" No." Please!" I said no!"Kathy knelt down on the floor and looked into her sister's eyes. "Look, I promise to be back early tomorrow morning. That way I can make it on time for the Halloween party. In the meantime, cover for me. I will tell Chris that I'm going to be studying with a study group again and not coming home until late. That way I can do my studying before the party. It's a perfect cover!" What if he goes to look for you? What then?".
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