Learn about gambling and the lottery in Massachusetts -

website how to calculate taxes on $5000 lottery winnings In fact, most states automatically withhold taxes on lottery winnings over $5,000 However, withholding rates vary how many people buy lottery tickets If your winnings exceed a certain threshold, usually $5,000, federal and state taxes might be automatically withheld In those instances, a W-2

how to calculate taxes on $5000 lottery winnings You are taxed on anything you win, whether it's cash, an item, a trip, or a service Winnings are subject to federal and state income taxes Most tangible  A winning lottery ticket is taxable income Therefore you pay tax at the rate of your tax bracket if you are in the 10% tax bracket you  Winnings above $5,000 require a 24% mandatory upfront federal withholding that goes straight to the IRS If you opt for the $ million cash

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