{"id":28487,"date":"2025-08-30T01:42:27","date_gmt":"2025-08-30T05:42:27","guid":{"rendered":"https:\/\/queonnda.com\/from-millionaire-to-broke-heres-what-the-irs-takes-from-you-if-you-win-the-lottery\/"},"modified":"2025-08-30T04:17:07","modified_gmt":"2025-08-30T08:17:07","slug":"from-millionaire-to-broke-heres-what-the-irs-takes-from-you-if-you-win-the-lottery","status":"publish","type":"post","link":"https:\/\/queonnda.com\/en\/from-millionaire-to-broke-heres-what-the-irs-takes-from-you-if-you-win-the-lottery\/","title":{"rendered":"From millionaire to broke? Here&#8217;s what the IRS takes from you if you win the lottery"},"content":{"rendered":"<p>Winning the lottery is a dream come true, but it can also become a headache if you don&#8217;t consider taxes.<\/p>\n<p>The IRS (Internal Revenue Service) takes a significant portion of your lottery winnings, and here at <a href=\"https:\/\/queonnda.com\/en\/\" target=\"_blank\" rel=\"noopener\">QueOnnda.com<\/a> we explain what to expect and how to prepare.<\/p>\n<h2><!--more--><\/h2>\n<h2>1. Federal taxes<\/h2>\n<figure id=\"attachment_9404\" aria-describedby=\"caption-attachment-9404\" style=\"width: 1200px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-9404\" src=\"https:\/\/queonnda.com\/wp-content\/uploads\/2025\/02\/IRS-loteria-2.jpg\" alt=\"\" width=\"1200\" height=\"800\" \/><figcaption id=\"caption-attachment-9404\" class=\"wp-caption-text\">PHOTO: Envato<\/figcaption><\/figure>\n<p>The IRS automatically withholds 24% of your winnings when you claim your lottery prize. However, this is just the beginning:<\/p>\n<p>If your earnings are very high, you could pay up to 37% tax.<\/p>\n<p>For example, if you earn $1 million, $240,000 will be withheld immediately, but you may owe another $130,000 when you file your taxes.<\/p>\n<figure class=\"wp-block-pullquote\"><blockquote><p style=\"color: #fd9737;\">Winning the lottery is a dream come true, but it can also turn into a headache<\/p><cite>QueOnnda.com<\/cite><\/blockquote><\/figure>\n<h2>2. State taxes<\/h2>\n<figure id=\"attachment_9408\" aria-describedby=\"caption-attachment-9408\" style=\"width: 1200px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-9408\" src=\"https:\/\/queonnda.com\/wp-content\/uploads\/2025\/02\/IRS-loteria-1.jpg\" alt=\"IRS lottery\" width=\"1200\" height=\"800\" \/><figcaption id=\"caption-attachment-9408\" class=\"wp-caption-text\">PHOTO: Envato<\/figcaption><\/figure>\n<p>In addition to federal taxes, many states also tax lottery winnings. Some examples:<\/p>\n<p><strong>New York:<\/strong> up to an additional 10.9%.<\/p>\n<p><strong>California:<\/strong> no state tax on lottery winnings.<\/p>\n<p>Consult a <a href=\"https:\/\/squareup.com\/es\/es\/glossary\/asesor-fiscal\" target=\"_blank\" rel=\"noopener\">tax advisor<\/a> to find out how this affects your situation.<\/p>\n<h2>3. Choice of payment<\/h2>\n<figure id=\"attachment_9410\" aria-describedby=\"caption-attachment-9410\" style=\"width: 1200px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-9410\" src=\"https:\/\/queonnda.com\/wp-content\/uploads\/2025\/02\/IRS-loteria-3.jpg\" alt=\"\" width=\"1200\" height=\"800\" \/><figcaption id=\"caption-attachment-9410\" class=\"wp-caption-text\">PHOTO: Envato<\/figcaption><\/figure>\n<p><strong>One-time payment:<\/strong> You receive less money in general, but all of it immediately.<\/p>\n<p><strong>Annual payments:<\/strong> Allows you to spread your earnings over the years, which can reduce your annual tax burden.<\/p>\n<p>Your decision will depend on your financial plan and your long-term goals.<\/p>\n<h2>4. Tips<\/h2>\n<figure id=\"attachment_9412\" aria-describedby=\"caption-attachment-9412\" style=\"width: 1200px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-9412\" src=\"https:\/\/queonnda.com\/wp-content\/uploads\/2025\/02\/IRS-loteria-6.jpg\" alt=\"IRS lottery\" width=\"1200\" height=\"800\" \/><figcaption id=\"caption-attachment-9412\" class=\"wp-caption-text\">PHOTO: Envato<\/figcaption><\/figure>\n<p>Hire an accountant or financial advisor specialized in large fortunes.<\/p>\n<p>Establish an emergency fund and pay your debts.<\/p>\n<p>Invest your earnings wisely to generate passive income.<\/p>\n<h2>5. Resign yourself!<\/h2>\n<figure id=\"attachment_9414\" aria-describedby=\"caption-attachment-9414\" style=\"width: 1200px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-9414\" src=\"https:\/\/queonnda.com\/wp-content\/uploads\/2025\/02\/IRS-loteria-4.jpg\" alt=\"\" width=\"1200\" height=\"800\" \/><figcaption id=\"caption-attachment-9414\" class=\"wp-caption-text\">PHOTO: Envato<\/figcaption><\/figure>\n\n<p>Winning the lottery is exciting, but the IRS keeps a significant portion.<\/p>\n<p>24% of your winnings are automatically withheld when you claim your prize. However, you may pay up to 37% on your tax return if your winnings exceed certain limits.<\/p>\n<p>For example, earning $1 million implies an immediate withholding of $240,000, but you could owe an additional $130,000.<\/p>\n<p>In addition, state taxes vary: New York charges up to 10.9%, while California does not tax these prizes.<\/p>\n<p>You must also choose between lump sum (less money, but immediate) or annual payments, which reduces the annual tax burden.<\/p>\n<p>Financial advice, creating an emergency fund and planning smart investments are recommended.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Winning the lottery is a dream come true, but it can also become a headache if you don&#8217;t consider taxes. The IRS (Internal Revenue Service) takes a significant portion of your lottery winnings, and here at QueOnnda.com we explain what to expect and how to prepare.<\/p>\n","protected":false},"author":8,"featured_media":9418,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[54,148],"tags":[489],"class_list":{"0":"post-28487","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"category-lottery","9":"tag-economy"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>IRS lottery withholding if you win<\/title>\n<meta name=\"description\" content=\"Find out how taxes affect your winnings if you win the lottery. 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