Taxes on Lottery Winnings


Mega Millions

The Mega Millions lottery is a multi-jurisdictional American lottery game. It was launched in the year 2002 and is currently available in 45 states, the District of Columbia, and the U.S. Virgin Islands. As of January 30, 2020, the lottery will be offered in these jurisdictions. The first drawing of Mega Millions was held on January 30, 2002.


Vikinglotto is a lottery that brings together the national lotteries of Norway, Sweden, Finland, Iceland, Latvia, Lithuania, Estonia, and Denmark. It is the first such cooperation among Scandinavian countries.

Black box

The black box lottery is a very old tradition, dating back to the times of the earliest men living in the village. The black color was a symbol of death and longevity. People did not dare to alter it, figuring that it would upset the tradition. As time passed, the black color faded, and the box became shabbier.

Taxes on winnings

Taxes on lottery winnings are usually treated like ordinary income, and are due in the year you receive them. Most states automatically withhold taxes from lottery winnings over $5,000, but withholding rates are not always the same as individual income tax rates. Some states, such as Arizona and Maryland, have separate resident and nonresident withholding rates. In addition, you may be required to pay estimated taxes.

Buying a ticket

Many people buy a lottery ticket in hopes of winning a large sum of money. Despite the fact that winning a lot of money is unlikely, it’s still a good way to spend some extra cash. Buying a ticket with a credit card is like using the card to withdraw cash from an ATM. The interest starts accruing immediately, and there’s no grace period.