How are Lottery Winnings Taxed?

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Summary Lottery winnings are tax-free at the point of receiving them You could pay savings tax on interest earned or your estate could be subject to

That's because lottery winnings are treated as income by the federal government and most states, so the jackpots are subject to state and income tax treatment of lottery prizes This guidance applies specifically The lottery prize payment is gambling winnings taxed as ordinary income

lottery changed my life Use the lottery tax calculator to estimate the tax amount deducted from a lottery prize, received as either a lump sum or through annuity payments  lottery winners paid millions in taxes, but the specifics might astonish you This video