$ billion Mega Millions: How is the lottery taxed in CA?

$ billion Mega Millions: How is the lottery taxed in CA? federal tax on lottery You are taxed on anything you win, whether it's cash, an item, a trip, or a service · Winnings are subject to federal and state income taxes · Most tangible federal tax on lottery While you don't have to report lottery winnings of $600 or less, if you win more than $5,000, the government will hit you with a 24 percent federal withholding

federal tax on lottery Because the federal government counts lottery winnings as income, getting such a large jackpot would likely move the winner into a higher tax

federal tax lottery winnings A Lottery prizes subject to taxation Any lottery prize of $600 or more shall be subject to Virginia income tax To the extent included in federal adjusted California and Delaware do not tax state lottery winnings Arizona and Maryland have separate resident and nonresident withholding