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Are state and federal taxes withheld on a prize?

April 26, 2017federal taxes prize State

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Are state and federal taxes withheld on a prize?

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Federal law requires that the Lottery report winnings of $600 or more to the IRS. Federal income tax of 25% and state income tax of 5.54% is withheld from any prize over $5,000. Other withholding provisions may apply.