{"id":15235,"date":"2017-01-19T07:00:14","date_gmt":"2017-01-19T13:00:14","guid":{"rendered":"https:\/\/www.hrblock.com\/tax-center\/?p=15235"},"modified":"2024-04-19T13:32:45","modified_gmt":"2024-04-19T18:32:45","slug":"winning-the-lottery-taxes","status":"publish","type":"post","link":"https:\/\/www.hrblock.com\/tax-center\/income\/other-income\/winning-the-lottery-taxes\/","title":{"rendered":"Powerball Taxes: Are Lottery Earnings Taxable?"},"content":{"rendered":"\n

Editor’s Note:<\/strong> 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…<\/em><\/p>\n\n\n\n

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?<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

Did you also<\/em> 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<\/em> 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 .<\/p>\n\n\n\n

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!<\/p>\n\n\n\n

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