
16. Don’t Forget Taxes
The federal government taxes any amount of money that you inherit or win. You know you need to pay them once a year. It’s not everyone’s favorite time of year, but you will like this moment less when you suddenly become rich. Because the government will take newfound wealth as a form of income, you need to claim it on your taxes.
Even if you win through gambling, the government has a way of tracking the large winnings and will find out if you didn’t claim your new wealth on your taxes, which will leave you with fines and other payments on your taxes. If you want to spend some money right away to pay off your student loans, credit card debt, or bills, you will want to put at least half of your money away for tax purposes.