lottery prizes taxable?
Lottery winnings of $600.01 and over are subject to Federal Withholding tax. For winnings of $600.01, up to and including $5,000, you will be issued a W-2G form to report your winnings on your federal income tax form. For winnings of $5,000.01 and over, your state's Department of Revenue removes the 27 percent federal withholding before you receive your winnings check (or, if it is an annuity, from each winnings check). You then receive a W-2G form with each check to submit with your 1040 form to show that the 27 percent federal withholding already has been paid. In addition to federal tax, your state will make additional withholdings as follows:
Georgia 6% state income tax, plus a deduction of any outstanding child support payments, student loans, and state taxes
Illinois 3% state income tax
Maryland 7% state tax (Maryland residents), 5% state tax (non-Maryland residents)
Massachusetts 5% state income tax
Michigan 4.2% state income tax
New Jersey Deduction of any outstanding child support payments
New York 6.85% state income tax, plus a deduction of any outstanding child support payments
Ohio 3.5% state income tax
Virginia 4% state income tax
