What are the tax implications of winning money or valuable prizes?

irs tax on lottery winnings   Dan irs tax on lottery winnings

Like all other taxable income, the IRS requires you to report prizes and winnings on your tax return, too That means you might have to pay

Meanwhile, other states have tax rates for lottery winnings that generally range from about 3% to almost 11% But in any case, once applicable taxes are taken Depending on your other income and the amount of your winnings, your federal tax rate may be as high as 37% You may also be subject to state

euro 2024 lottery Lottery agencies are generally required to withhold 24% of all winnings over $5,000 for taxes If your winnings put you in a higher tax bracket, Millions in lottery proceeds easily put the winner in the top federal income tax winnings, but others have top-income state tax