Powerball Taxes: Are Lottery Earnings Taxable?
Editor’s Note: If you win big, so could Uncle Sam. This infographic details all things lottery & Powerball taxes: including reporting lottery earnings on taxes and the best place in America to win big! View the infographic below…
Did you know the worst state to win the lottery is New York City?… And the best is Florida? Did you also know your best chance to win $1 million is in Pennsylvania?
When it comes to taxes, different cities and states around the country have different percentages of income taxation. For example, a New York citian who won $1 million, would walk away with $621,223 after Powerball taxes came into play; whereas in Florida, a Powerball winner would walk away with $707,515 on a $1 million jackpot.
Did you also know that not every state has a lottery? In fact, there are seven states that don’t have a lottery. In the states that do host a lottery, the taxes withheld vary from 0 to 9.25%… So, on top of the federal tax amount due, you would also be taxed based on the percentage .
Say you did strike it rich in the Powerball jackpot… Can you reduce your taxes through charitable donations or monetary gifts to family members? Read on to find out!
Like this infographic? Use the code below to embed it on your site:
Learn more about capital loss carryovers and get tax answers at H&R Block.
If you are giving large gifts this year, it's important to know the IRS rules surrounding gift taxes. Learn more about the gift tax exclusion at H&R Block.
Learn more about receiving a short-term mutual funds loss, from the tax experts at H&R Block.