 | | |
|
|
|
Lottery's Frequently Asked Questions
|
|
|
Do I Have to Pay Taxes on My Winnings?
|
|
|
|
Answer:
|
|
All Michigan Lottery prizes are subject to federal, state and local income taxes. The Lottery is required by law to report to the IRS all winnings greater than $600. The Lottery is required by law to withhold estimated taxes at the rate of 25 percent (federal) and 4.35 percent (state) for any prize over $5,000 paid to a U.S. resident. Winners of prizes greater than $600 will receive a W2-G form, detailing prize payment and taxes, at time of payment to be filed with their yearly federal, state and local income taxes. Non-U.S. residents winning prizes of greater than $600 are subject to a flat 30 percent estimated federal withholding rate as well as the 4.35 percent state withholding rate and will receive a 1042 form detailing prize payment and taxes in February.
|
|
