How are Lottery Winnings Taxed?

How are Lottery Winnings Taxed? federal tax lottery winnings Generally, the federal government taxes prizes, awards, sweepstakes, raffle and lottery winnings, and other similar types of income as ordinary income, no federal tax rate on lottery winnings Income from lottery winnings and online games are included under the head 'Other source of Income' and is taxable at the special rate of 30%

federal tax rate on lottery winnings The Pennsylvania Lottery will automatically withhold PA personal income tax on prizes greater than $5,000 claimed after July 12, 2016 Winners of over $600

federal lottery tax Lottery winnings over $5,000 are subject to both federal and state income tax withholding—this is, part of your winnings are automatically paid the IRS means the Internal Revenue Service Gambling winnings means and includes proceeds from a wager placed in a sweepstakes, wagering pool, or lottery (other