What Is the Tax Rate for Lottery Winnings? - Money

What Is the Tax Rate for Lottery Winnings? - Money states that don't tax lottery winnings A: For residents and resident aliens, percent in federal and state withholding taxes is deducted for every Lottery prize over $5,000 Current federal tax states with online lottery You do not have to report certain non-taxable amounts as income, including the following: lottery winnings of any amount, unless the prize

states with online lottery However, it can only do that if it's legal in the state where you bought the ticket Texas, for example, has a law authorizing such conversions;

states that allow lottery winners to remain anonymous STATE TAX WITHHOLDING Residents of the following 14 states are lucky—they won't face any state taxes on lottery winnings: Alabama, Alaska, Lottery winnings are treated as income by the federal government and most states, and thus are subject to state and federal income taxes