How Are Lottery Winnings Taxed by State?

Lottery winnings that are more than $5,000 get a federal tax of 24%, therefore, you'll be cutting more than $12 million from the annual payments

The IRS considers net lottery winnings ordinary taxable income So after subtracting the cost of your ticket, you will owe federal income taxes

taxes lottery Reporting Gambling Winnings You'll report the income and the taxes already paid on it under Other Income on your Form 1040 tax return when you prepare your

taxes on poker winnings However, before getting your winnings, you'd have to pay a 24% tax withholding, which the IRS requires for winnings over $5,000 Out of the