Powerball Jackpot soars to $925 Million: The after-tax reality for the

Powerball Jackpot soars to $925 Million: The after-tax reality for the federal lottery tax rate Gambling winnings are fully taxable and you must report the income on your tax return Gambling income includes but isn't limited to winnings from lotteries, federal tax on lottery The current federal income tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37% So, depending on the amount of prize money received, the federal

federal tax on lottery The withholding rate for federal income tax is based, in part, on a claimant's resident status The Lottery is required to withhold federal taxes of 24% for

federal taxes on lottery winnings The winnings are subject to federal income tax withholding The tax withholding rate is 24% for lottery winnings, less the All winnings over $5,000 are subject to tax withholding by lottery agencies at the rate of 24% This potentially leaves a gap between the