Gambling and Lottery Winnings

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First, any prizes above $5,000 will be hit at least with a 24% federal tax, regardless of which state you are in The winner may owe additional

The IRS considers net lottery winnings ordinary taxable income So after subtracting the cost of your ticket, you will owe federal income taxes The federal government will take 24% off the top of lump sum winnings from a lottery jackpot Then it is the state's turn

slot m2 sata California, unlike some other states, does not levy income tax on lottery tickets purchased within its borders However, this doesn't mean the Winnings are subject to federal and state income taxes Most tangible prizes like cars and homes are taxed at their fair market value Lottery winnings are