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If you win more than $5,000 in the lottery or certain types of gambling, 24% must be withheld for federal tax purposes You'll receive a Form W-

The IRS takes federal tax “off the top ” But the winner then pays additional federal income taxes based on the tax rate tied to their federal Lottery winnings are subject to federal income tax at a rate of 24%, and some states may also impose their own tax on lottery winnings, ranging from 0% to %

ladbrokes irish lottery online Lottery winnings are considered taxable income Besides the upfront withholding, your total federal tax rate could be higher—up to 37% If While Americans are generally allergic to high taxes, the high tax rates on lottery winnings haven't provoked a public outcry If you win over