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How do you claim winnings from a state lottery?

If someone wins $6,000,000 in a state lottery and takes the lump sum option of $3,000,000 do they need to claim $6 million as taxable income or just the $3 million they received?

7 Answers

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  • 3 years ago
    Favorite Answer

    The $3M that they accepted is taxed in that case but the tax will be paid in on year. The $6M would be paid out over several years and taxes would be paid on the amount distributed in each year.

  • 3 years ago

    no

  • Jay P
    Lv 7
    3 years ago

    If you buy a car that has a retail price of $20K on it but you bargain it down to $18K, do you pay tax on what you actually paid or the suggested retail price of the vehicle?

    The same goes with lottery winnings...

  • Anonymous
    3 years ago

    I believe you don't need to claim it on your taxes.... The taxes were Already taken out. They already took 3 million dollars out for taxes. But you can confirm with the lottery office.

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  • Anna E
    Lv 7
    3 years ago

    You would only claim the $3 million received. The person WILL receive a statement at tax time indicating the amount of winnings they must report.

  • ?
    Lv 7
    3 years ago

    Only what you receive.

  • 3 years ago

    Just the 3 million received.

    Source(s): 40 year retired Agent.
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