How are Lottery Winnings Taxed?

us lottery tax
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In Australia, lottery winnings are classified as tax-free income You might have heard stories about lottery winners in the US losing a big

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us immigration lottery Lottery winnings are considered ordinary taxable income by the IRS Even if an installment winner sells the future income stream to another

us online lottery What do federal taxes look like on a lump sum payment? The federal tax rate on any prize over $5,000 is 24%, which gets immediately deducted