IP 201128 Connecticut Income Tax Treatment of State Lottery

federal tax on lottery
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State Lottery winnings are currently subject to federal income tax withholding only if the proceeds from the wager

Winnings from lottery and gambling activity must be reported on your tax return and are fully taxable by the IRS and most state governments The

federal lottery tax rate Federal income tax As previously mentioned, you have to pay federal income tax on lottery winnings Right off the bat, lottery winnings over

federal lottery taxes Because the federal government counts lottery winnings as income, getting such a large jackpot would likely move the winner into a higher tax