Lottery prizes are considered income, and the Ohio Lottery reports all winnings of $600 or more to the Internal Revenue Service, Kilbane said.
The state sends people who win lottery prizes of $600 or more tax forms to report their winnings on their tax returns, the lottery said.
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The Ohio Lottery withholds a 25 percent federal tax and 4 percent state tax for prizes of more than $5,000, but winners may owe additional taxes, officials said.
Not all municipalities tax lottery winnings. However, “customers should contact their local municipality to see if lottery winnings are taxed and take care of any reporting requirements,” according to the state lottery.