Tax Requirements for Lottery Prizes
The Ohio State Lottery is required to report lottery winnings over $600 to the Internal Revenue Service.
The Ohio State Lottery withholds taxes before prize money is paid out. Federal and state withholding taxes are deducted for every lottery prize over $5,000.
Federal Income Tax: Current federal tax law requires the Lottery to withhold 24% in federal income taxes on winnings over $5,000.
Ohio State Income Tax: Ohio State law requires the Lottery to withhold 3.99% in Ohio state income taxes.
Please note: Depending on other income and deductions, amounts withheld by the Ohio State Lottery on your winnings may or may not be sufficient to meet one’s total tax obligation.
Tax Returns. According to the Internal Revenue Service, winnings from lotteries and raffles are considered gambling winnings. After the end of the year, the Ohio State Lottery will send each winner a Form W2-G report showing the amount of lottery prize payments to be reported as income and the amounts of federal and state taxes withheld to be reported as credits on the winner’s federal and state tax returns.
Additional Information. Additional information about taxation on lottery winnings can be found on the Internal Revenue Service website. If you have any questions, please consult a professional tax adviser.
How Do You Pay Taxes on Lottery Prizes Won through TheLotter Ohio?
Lottery prizes up to $600. Lottery prizes of up to $600 will be paid to winners shortly after receipt of the prize money from the Ohio State Lottery. In this case, no taxes are withheld from the prize.
Lottery prizes over $600. All lottery prizes of $600 and up are collected by the winners personally at offices of the Ohio State Lottery.
The Ohio State Lottery withholds taxes on all lottery prizes over $5,000 as detailed above.
TheLotter Ohio takes no commission on lottery prizes.