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Apr 12, 2024 · Like your paycheck, the government considers lottery winnings income. How much tax you’ll owe will depend on your existing income and, by extension, your federal tax bracket.
At a glance: Lottery winnings are considered taxable income for both federal and state taxes. Federal tax rates vary based on your tax bracket, with rates up to 37%. Winning the lottery can bump you into a higher tax bracket. Lottery winnings don’t count as earned income for Social Security benefits.
Mar 6, 2024 · If your gross prize for lump sum payout is $1,000,000, you need to pay $334,072 in total tax ($240,000 federal withholding, plus the remaining $94,072 for single filing status in 2021). In addition, you need to pay state tax as well, depending on where you bought the lottery and where you live.
Dec 12, 2023 · Say you’re a single filer making $45,000 a year during the 2023 tax year and you won $100,000 in the lottery. That raises your total ordinary taxable income to $145,000, with $25,000 withheld from your winnings for federal taxes.
2 days ago · Jackpot. $74,900,000. State tax (4.8%) - $3,595,200. Federal tax (24%) - $17,976,000. Total tax deductions. - $21,571,200. Net jackpot after tax. $53,328,800. Notes. The cash lump sum payment is the available jackpot prize pool at the time of the draw.
