Taxes on Lottery Winnings Explained

Personal tax tip #59 Gambling Winnings and Your Maryland Tax federal tax for lottery winnings The federal government withholds 24% of your winnings immediately You may owe additional federal taxes depending on your overall tax bracket Each state also federal lottery tax If you live in one of ten states that don't tax lottery winnings, you're probably off the hook for state income taxes They include: Alaska,

federal lottery For prizes over $5,000, the Lottery is required to withhold 25% for federal taxes, and 8% for state income taxes For Video Lottery℠ Platinum Series