The tax withholding rate is 24% for lottery winnings, less the wager, for prizes greater than $5,000.Īn example of the calculation used to determine whether a prize winning exceeds the threshold for required withholding is detailed below: The winnings are subject to federal income tax withholding (winnings greater than $5,000.00).$600 or more in winnings when the payout is at least 300 times the amount of the per board wager,.
citizens, the Federal Government requires the Texas Lottery Commission to report the following lottery winnings to the IRS:
