Are State & Federal Taxes withheld on Georgia Lottery Prizes?
A.Yes. All Georgia Lottery prizes are subject to applicable federal and state withholdings, and state and federal income taxes. The GLC reports to the IRS and Georgia Department of Revenue the names of winners of prizes of $600 and above. Georgia state income tax of 6% and federal income tax of 25% are withheld from prizes of more than $5,000 at the time the prize is claimed. Additionally, the GLC is required to check for and deduct any outstanding child support payments for prizes of $2,500 and above and student loans and state taxes for prizes of $5,000 and above, net of wager or ticket cost.
