Finally got around and did our 2012 tax returns. We could not itemize since we do not have enough deductions. Standard IRS deduction is $11,900 and an extra $2300 for senior citizens. After including our W2G wins totaling just over $3100 on line 21, it only resulted in additional taxes of just over 15 percent of the win. I thought it would be higher. Our state does not tax retirement income so after the standard deduction, we did not owe anything to the state.