If a group or pool of players claims a large prize, does every member pay taxes?
When large groups of players claim a large or jackpot prize, each player shares in the tax liability equally. Taxes are removed at a rate of 25% Federal and 7.8% Idaho tax. Each claimant receives their W-2 G forms which detail their tax liability along with a check for their portion of the remaining money. If a group selects an annuity, taxes are removed each year based upon current tax laws before preparing the winners’ annual checks. The Idaho Lottery must pre-pay taxes on winning amounts consistent with current Federal and State tax laws.
