How Much Do Lottery Winners Pay in Taxes? $ Jackpot!

federal lottery tax rate   Dan federal lottery tax calculator

Under federal, state and local tax laws and other lottery rules, your fortune will be knocked down a bit Mega Millions is a multi-state lottery

Besides the time-value-of-money discount rate, a lump-sum payout also results in federal tax of 37% on every dollar over $539,900 Before winners even see a penny of their jackpot, the federal government withholds a mandatory 24% that goes to the IRS The tax applies to

steps after winning lottery Taxes: The IRS requires that you report ALL Lottery winnings The Lottery is required by law to withhold 24% for federal taxes and % for state income If you win over $5,000 from a Powerball or Mega Millions jackpot, or any lottery game, state lotteries are required to withhold 24% in federal