Taxes On Lottery Winnings: What You May Owe

How are Lottery winnings taxed? 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 federal income tax on lottery winnings That's because lottery winnings are treated as income by the federal government and most states, so the jackpots are subject to state and

federal lottery tax Before seeing a penny of the jackpot, the winner will pay a 24% mandatory upfront federal withholding to the IRS If they choose the $