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Yes, and it is considered a different class of income than normal - so different tax rates usually.


The 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?


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.


Awesome. Thanks for that info and link!

This is another reason to keep and all losing tickets... to offset your winnings and applicable taxes.




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