Winnings and Taxes
When filing a standard claim form, the claimant, the retailer, and the Pennsylvania Lottery each receive a copy (the form is triplicate). The Lottery then reports all winnings to the IRS. For federal income tax purposes, any lottery winnings over $2,500 in a fiscal year are taxable. However, when the winning amount is greater than $5,000, the Pennsylvania Department of Revenue withholds the proper amount of federal income tax before a check is mailed to the claimant. Pennsylvania Lottery winnings are taxable only on the federal level..
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Famous quotes containing the word taxes:
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