5 Tips for Avoiding Taxes on Lottery Winnings

If the winner chooses the more popular lump sum option, the winnings would be reduced to $ million after a mandatory 24% federal tax

5 Tips for Avoiding Taxes on Lottery Winnings federal tax brackets impact your winnings and the significant differences in state taxation

If the winner chooses the more popular lump sum option, the winnings would be reduced to $ million after a mandatory 24% federal tax

federal lottery taxes Lottery winnings are treated as income In the US, income is taxed at the federal level, the state level and the county level

California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming do not have lottery winnings withheld This means that only federal

federal tax lottery winnings With a large jackpot, if the winner opted for the lump sum cash value, they would be subject to federal income tax at the top tax rate, which is 37% (So after

Lottery winnings over $5,000 are subject to both federal and state income tax withholding—this is, part of your winnings are automatically paid