How are Lottery Winnings Taxed?

How are Lottery Winnings Taxed? federal income tax on lottery winnings Before collecting the proceeds, there's a 24% federal tax Some states have no income tax or don't tax lottery winnings, but others have top- federal tax lottery winnings You are then taxed at the appropriate rate based on your income tax bracket It's not quite that straightforward, however… Federal Income Tax

federal tax lottery winnings If you choose to donate, split, or assign your lottery winnings, in whole or in part, it is taxable to the recipient in the same way as for federal income tax

federal income tax on lottery winnings According to CNN Money, prize money is taxable income; lottery winnings are taxed just like income, and the IRS taxes the top income bracket However, the That's because when anyone wins the lottery, the IRS withholds 24% of the winnings off the top With a large jackpot, if the winner opted for the lump sum cash