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Yes, and it is considered a different class of income than normal - so different tax rates usually.
by hirsin 9y ago
Yes, and it is considered a different class of income than normal - so different tax rates usually.
- jrs235 9y agoThe only difference of "class" that I can think of might be since it's not from employment then it wouldn't be subjected to FICA. Otherwise, from my understanding it is taxed as regular income tax rates. Is this what you are alluding to?
- eric_h 9y agohttps://www.efile.com/taxable-gambling-winnings-income-taxes/ https://www.efile.com/taxable-gambling-winnings-income-taxes... suggests that winnings are taxed at a flat 25% up to $5000 and beyond that it's treated as income.
- jrs235 9y agoAwesome. Thanks for that info and link! This is another reason to keep and all losing tickets... to offset your winnings and applicable taxes.