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Are Pennsylvania Lottery prizes taxable?
Updated 08/25/2016 01:19 PM
Yes. Beginning with prizes paid January 1, 2016, Pennsylvania Lottery monetary prizes are taxable income and should be reported by winners when filing federal and state taxes.
Under law, Lottery cash prizes over $5,000 are subject to withholding. This means that the Lottery will withhold 25 percent in federal taxes and 3.07 percent in state taxes before paying the prize.
For all prizes of $600 or more, winners will receive a W-2G form from the Lottery to submit with their tax returns. These forms usually arrive by mail in February for prizes awarded in the preceding calendar year.
A winner's total tax liability on Lottery prizes depends on factors including income, deductions, exemptions and other factors, so please consult a qualified tax professional with any questions before filing a tax return. The Lottery cannot provide tax filing advice to individuals.
For more information about Pennsylvania's Personal Income Tax, visit the Pennsylvania Department of Revenue online at www.revenue.pa.gov. A page specifically pertaining to Lottery winnings is found here: