Lottery Tax Planning for a Billion Dollar Drawing

Taxes on Lottery Winnings Explained federal tax for lottery winnings Under Act 84 of 2016, the Pennsylvania personal income tax of percent now applies to Pennsylvania Lottery cash prizes paid after January 1, 2016 federal tax rate on lottery winnings The IRS views lottery winnings as ordinary income The top tax winning the lottery would bump the winner — has a 37 percent tax rate

federal taxes on lottery winnings Lottery winnings, considered taxable income, are subject to both federal and state income taxes The Internal Revenue Service imposes a