if i win the lottery and i pay taxes on it do i still have to add the winning to my income taxes?

Answer 1

Yes, of course you do. You'll get a W-2g at the end of the year showing your gross winnings, which you'll have to report on both your federal and state income tax returns, and also the federal and state tax withheld, which you'll get credit for on your federal and state tax return. Whoever pays you your winnings has no idea what the rest of your income is for any given year, they only know how much you won from the lottery and base the taxes withheld on that. It's the same thing as getting a paycheck every week, you have the taxes withheld, but still have to list down your W-2 income at the end of the year.

Answer 2

Yes you do. The taxes paid when you get the prize are just withholding, and might be more or less than you actually end up owing. When you file your return, you claim the income as "other income" and the amount withheld from it as taxes withheld, then either pay the additional or get a refund depending on whether you paid in too much or not enough.

Answer 3

The taxes withheld from your winnings or the estimated taxes paid by you are reported on your income tax return. The winnings are reported as income. The taxes due are then reduced by the withheld tax or prepaid estimated tax.

Answer 4

You should get a form from the lottery stating how much your winnings were and how much was already taken out for taxes.

and YES you need to add it to your income taxes.

Answer 5

Hate to clue you in, but that's how you pay the tax on it! You add it to your other income on your tax return and, Presto: Your new (and huge) tax liability!