Tax on Winning Game Shows & Lotteries
Tax on Winning Game Shows & Lotteries
Unlike salary or professional income where people are allowed to take deductions or allowance, winnings from contests are fully taxable This is
Lottery winnings are considered taxable income Besides the upfront withholding, your total federal tax rate could be higher—up to 37% If you The IRS views lottery winnings as ordinary income The top tax winning the lottery would bump the winner — has a 37 percent tax rate
wednesday night''s lottery numbers The federal government withholds 24% of your winnings immediately You may owe additional federal taxes depending on your overall tax bracket Each state also State lottery winnings are reportable to the IRS where the State agency conducting the lottery requires a winner to complete federal Form W-2G, Certain Gambling
