irs tax on lottery winnings
How Taxes on Lottery Winnings Work
irs tax on lottery winnings
website irs tax on lottery winnings 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 irsh lottery The IRS considers net lottery winnings ordinary taxable income So after subtracting the cost of your ticket, you will owe federal income taxes
irs tax on lottery winnings The federal government withholds 24% of your winnings immediately You may owe additional federal taxes depending on your overall tax bracket Each state also The exact amount depends on the winner's tax bracket, which is determined by his winnings and other sources of income The IRS holds on to 25%, while the winner In most cases, they'll be taking 37% of the winnings for each payment It's almost impossible to wiggle your way out of the federal tax rate
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