Taxes on Lottery Winnings for US Expats & Nonresident Aliens

Income Tax on winnings from Lottery, Game Shows, Puzzle federal tax on lottery winnings Section 194B of Income Tax Act Under Section 194B of the Income Tax Act, TDS will be deducted when the income is earned from the winning lotteries, card games, federal taxes on lottery winnings State lottery winnings are reportable to the IRS where the State agency conducting the lottery requires a winner to complete federal Form W-2G, Certain Gambling

federal lottery taxes Lottery winnings are not taxed twice Under both the federal and state tax system, they are considered ordinary taxable income You pay tax on your winnings