What is the dollar amount that you can win in a lottery before having to pay taxes on it?
What is the dollar amount that you can win in a lottery before having to pay taxes on it?
The casino is in Oklahoma. I was just wondering if the people of Kansas who won the lottery down in Oklahoma were to pay taxes if it reaches a specified dollar amount?
Posted by: Renee B
Answers
In the United States, any lottery winnings over $600 are typically subject to federal income tax, regardless of which state the lottery was played in. State income taxes may also apply, depending on the state in which the lottery was played and the state of residence of the winner.
It’s important to note that the specific tax laws and regulations can vary by state, and it’s always a good idea to consult with a tax professional or accountant for personalized advice regarding lottery winnings and taxes. Additionally, it’s important to remember that winning the lottery can have a significant impact on your overall tax liability, and it’s important to plan accordingly and to understand the potential tax implications before claiming your prize.
Win Zero.. pay zero…
The government requires YOU pay taxes on all winnings.
If you are at a casino and win $100.oo or whatever amount, and there is no receipt… then there is n o paper trial… Now the casinos are printing receipts right at the machine so you need to claim or get a good lawyer if you are ever audited.
Lottery IS definitely taxed !!
Federal Taxes – 100% must be reported and claimed to the IRS.
States have different tax rates and laws.
For federal purposes, every dollar won must be included on your tax return. Just because you don’t get a W-2G does not mean you don’t have to include those winnings. Most winnings of $500 or less don’t trigger a W-2G. Don’t forget that you get to write off gambling losses against winnings. Enter the losses on Schedule A as “Other – not subject to the 2%”. Your total losses you enter on Schedule A can not exceed the amount of winnings you claim on line 21 of your 1040.
Most states don’t tax winnings from their own state’s lotteries, but they do tax winnings from other states lotteries. Check with your state’s tax page. Oklahoma may even tax you too. You better check with them too to see if you have to file a tax return there.