Tax Planning for Lottery Winners
Tax Planning for Lottery Winners
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The federal government will take 24% off the top of lump sum winnings from a lottery jackpot Then it is the state's turn
The governing lottery body withholds 24% of the prize automatically, leaving the balance to be paid by the winner, according to Lottery USA The 2024 federal tax brackets place the Mega Millions jackpot winnings at a 37% tax rate, whether the winner opts for the lump sum or not That's because the 37
list of advantage play slot machines Current federal tax law requires the Lottery to withhold 24 percent in federal income taxes, and current Minnesota state law requires the Lottery to withhold While lottery winnings of $600 or less are not reported to the IRS, winnings in excess of $5,000 are subject to a 25 percent federal withholding