Lottery winnings are subject to federal and sometimes state taxes. If you win big, plan for the taxes ahead of time. Many, or all, of the products featured on this page are from our advertising ...

If you win more than a certain amount, you’ll have to pay taxes on your winnings. That’s because ... products and services we review may not be right for your circumstances.

Immediate Withholding: The IRS automatically withholds 24% of your winnings for federal taxes right away. Higher Tax Rate: Since lottery winnings are considered ordinary income, they can push you ...

However, the good tax news for some is that eight U.S. states currently don’t tax lottery winnings. But remember, these states still have to withhold federal taxes from your prize. Here they are.

RELATED: Mega Millions ticket price jumps—Are you ready ... Then there are the taxes. The IRS immediately takes 24% of all lottery winnings over $5,000, dropping the total to approximately ...