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Do I Have to Pay Taxes on My Winnings?
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.

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The information contained on these pages is intended for personal use only and may not be reproduced or distributed without the express written consent of the Michigan Lottery, 101 E. Hillsdale, Lansing, Michigan 48933.

Disclaimer:  The only basis for a valid Lottery claim is compliance with the Lottery Statute and the Lottery Rules.  No valid Lottery claim may be premised on human, electronic, or other error in the communication, display or transmission of data, however recorded, displayed, or transmitted.  No valid Lottery claim can be premised upon any intentional human, 
electronic, or other form of communication or transmission of data, which has not been authorized by the Lottery Commissioner.

Authority: Act 239, 1972, as amended.

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