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Taxes. Lottery winnings may be taxed depending on state taxes. Though it is not clear if this is a lottery or gambling. Gambling winnings are not normally ta

• thaumasiotes 13y ago
  > Gambling winnings are not normally taxed in the US. Where did you hear this? They're income, and subject to the income tax.
  • DavidAdams 13y ago
    Not only that, you can deduct gambling losses from your income, if you're unlucky.
    • jxf 13y ago
      Not accurate. For US federal taxes, you can deduct gambling losses against gambling winnings, but not against your income. If you earn $50,000 in income, $X in winnings, and $Y in losses, you pay taxes on $50,000 of income, plus taxes on $X-Y of winnings (if it's a positive number).
    • rschmitty 13y ago
      You can only deduct them from your _winnings_, not income[1]. You can't go to Vegas, blow $10,000 on a single round of blackjack and deduct that at the end of the year. 1: http://www.irs.gov/taxtopics/tc419.html http://www.irs.gov/taxtopics/tc419.html
• lazyant 13y ago
  Taxed in the US but not in Canada I believe (IANAL etc)