Withholding Taxes and Reporting Requirements

federal lottery taxes   Dan federal lottery tax

The Powerball jackpot has grown to an estimated $1 billion Here's what the winner can expect to pay in taxes

If the winner chooses the more popular lump sum option, the winnings would be reduced to $ million after a mandatory 24% federal tax taxation Degree of Conformity to Federal Capital Gains Social Security Unless otherwise indicated , capital gains are taxed as ordinary income ; no

how to win a lottery ticket The winnings are subject to federal income tax withholding The tax withholding rate is 24% for lottery winnings, less the Besides the time-value-of-money discount rate, a lump-sum payout also results in federal tax of 37% on every dollar over $539,900