Taxes on Prize Winnings and More!

Tax Planning for Lottery Winners taxes lottery According to federal and state laws, if you provide a social security number the Lottery withholds 28 percent from your prize winnings (24 percent federal; 4 taxes on poker winnings No Social Security and Medicare taxes are only assessed on earned income Lottery and gambling winnings are not considered earned income The

taxes on $5 The reward would be subject to tax according to Section 56 and reported under the title “Income from Other Sources ” The lottery winners are