Taxes on Lottery & Gambling Winnings: What You Need to Know

Lottery winnings and prizes are considered income by the IRS and are subject to federal and state income tax You'll owe taxes in the year

Prize money is considered any money received from awards, raffles, lottery winnings, and any other type of contest Generally, the IRS taxes prize money as

irs tax on lottery winnings Like the IRS, most states treat lottery and gambling winnings as income subject to tax, so the total amount of tax you owe from your winnings

irsh lottery If your prize is over $5,000, the IRS requires the payor to withhold 28% for federal taxes In addition to federal tax on lottery winnings, your