Tennessee Lottery Results & Facts. $600 or less. So, for instance, if you make $42,000 annually and file as single, your federal tax rate is 22%. California and Delaware do not tax state lottery winnings. If a state tax department requires you to send it a paper copy of Form W-2G, use Copy 1 for that purpose. Lottery Tax Calculator: How Your Winnings Are Taxed. Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions. Guide to federal and Illinois gambling taxes, including rules for casinos, lotteries and sportsbooks. Lottery taxes are anything but simple, the exact amount you have to pay depends on the size of the jackpot, the state/city you live in, the state you bought the ticket in, and a few other factors. Lottery Tax Calculator: How Much Do You Keep for Yourself? Therefore, taxes on $5,000 lottery winnings would be $1,691 , and your total payout would be $3,309 . Whether youre in a tax-friendly state for lottery income or not, read through the next section for how to calculate your taxes depending on which payout you choose. Il Scratch Offs - Best Odds - Lottery Results, Predictions, & Strategy Depending on the size of your prize, you will see taxes collected by the federal government and the state of Illinois. Generally, the advertised prize amount refers to the amount paid out if you pick the annuity, and the lump sum amount is specified as a lower cash value or cash option prize. Now that weve gone through all the scenarios, there is a bit of good news. Maximum Possible Sales Tax. Do You Pay Taxes on Lottery Winnings Every Year. Still, you might have to pay extra federal tax beyond the withheld amount. In the U.S. lottery, winners receive a lottery prize typically over 30 years annually, but it may alter depending on the country and type of lottery. Nonresidents must file a Form IL-1040 Schedule NR that will determine the appropriate taxes owed to the state.