The Texas lottery offers games such as: scratch-off tickets, Mega Millions, Powerball, Lotto Texas, Texas Two Step, Pick 3, and Daily 4. State lottery laws regulate issues such as how the revenue is to be distributed, whether lottery prizes may be garnished (delinquent taxes, child support payments, etc.), the time limits to claim prizes, as. Past Lotto Texas lottery numbers; results from the last 6 months’ worth of draws covering tickets which are currently valid.
- Texas Lottery Winners Anonymous
- Texas Lottery Winners From Humble
- Texas Lottery Winners 2021
- Texas Lottery Winners In Houston
No doubt about it, winning the lottery dramatically changes a person’s life. A financial windfall of that magnitude quickly grants you a level of financial freedom you probably have trouble imagining.
But becoming a Mega Millions or Powerball jackpot winner doesn’t change everything. If you are the lucky winner, you still have to worry about bills and taxes. This is when a lottery tax calculator comes handy.
How are lottery winnings taxed under federal and state?
Lottery winnings are considered ordinary taxable income for both federal and state tax purposes. That means your winnings are taxed the same as your wages or salary. And you must report the entire amount you receive each year on your tax return.
For example, let’s say you elected to receive your lottery winnings in the form of annuity payments and received $50,000 in 2019. You must report that money as income on your 2019 tax return. The same is true, however, if you take a lump-sum payout in 2019. You must report that entire amount as well. For this, a tax calculator is an essential tool.
Note: Before you receive one dollar, the IRS automatically takes 25 percent of your winnings as tax money. You’re expected to pay the rest of your tax bill on that prize money when you file your return.
What is the tax rate for lottery winnings?
When it comes to federal taxes, lottery winnings are taxed according to the federal tax brackets. Therefore, you won’t pay the same tax rate on the entire amount. The tax brackets are progressive, which means portions of your winnings are taxed at different rates. Depending on the number of your winnings, your federal tax rate could be as high as 37 percent as per the lottery tax calculation.
State and local tax rates vary by location. Some states don’t impose an income tax while others withhold over 15 percent. Also, some states have withholding rates for non-residents, meaning even if you don’t live there, you still have to pay taxes to that state.
Do I have to pay state taxes on lottery winnings if I don’t live in the state where I bought the ticket?
Most states don’t withhold taxes when the winner doesn’t reside there. In fact, of the 43 states that participate in multistate lotteries, only two withhold taxes from nonresidents. Arizona and Maryland both tax the winnings of people who live out-of-state.
Can I change the amount of tax the lottery withholds?
You don’t have a choice on how much state or federal tax is withheld from your winnings. The only piece you can control is how much money you save to cover any extra money you may owe. For this, you can use a federal tax calculator.
Do lottery winnings count as earned income for Social Security purposes?
Lottery winnings are not considered earned income, no matter how much work it was purchasing your tickets. Therefore, they do not affect your Social Security benefits.
Does winning the lottery affect my tax bracket?
Winning the lottery can affect your tax bracket in a big way. An average family’s top federal tax rate could go from 22 percent to 37 percent. But remember, if that happens, you likely won’t pay the top rate on all of your money.
That is unless your regular household income already places you in the top tax bracket prior to winning. In that case, all of it is taxed at 37 percent. This can be calculated using a tax calculator. Lottery winnings are combined with the rest of your taxable income for the year, meaning that money is not taxed separately.
What are the benefits of taking a lump sum payment versus annuity payments?
If you take a lump sum, you have more control over your money right now. You can choose to invest it into a retirement account or other stock option to generate a return. You could also use it to buy or expand a business.
Several financial advisors recommend taking the lump sum because you typically receive a better return on investing lottery winnings in higher-return assets, like stocks. If you elect annuity payments, however, you can take advantage of your tax deductions each year with the help of lottery tax calculator and a lower tax bracket to reduce your tax bill.
The decision for which option is better is complex. It all depends on the size of the lottery winnings, your current and projected income tax rates, where you reside, and the potential rate of return on any investments. If you win big, it’s in your best interest to work with a financial advisor to determine what’s right for you. However, you can also determine the taxes using a federal tax calculator.
Are you a lucky winner? Determine what you owe in taxes with this Lottery Tax Calculator.
More to explore:
Texas Powerball Rules
You have to be at least 18 years old to play Powerball in Texas. You can buy tickets up to 9:00pm Central Time (10:00pm Eastern Time) on draw days and just need to select your own numbers or ask for a Quick Pick if you want a random selection. You can play the same numbers for up to 10 consecutive drawings in advance by marking the appropriate box in the ‘Multi-Draw’ section of the playslip.
In Texas, you have to choose whether you would accept the cash value or the annuity at the time when you purchase your ticket rather than when you claim your jackpot. There is no state tax on lottery prizes.
Texas Lottery Winners Anonymous
If you win an award of $599 or less, you should be able to collect your money from any licensed lottery retailer.
For a prize of $600 to $2.5 million, there are several options. You can either visit your local claim center, the Texas Lottery Commission headquarters in Austin, or fill out a claim form and mail it, along with the winning ticket, to the lottery’s headquarters at the address below. It will normally take four to six weeks to process claims that are mailed.
Texas Lottery Commission
ATTN: Austin Claim Center
PO Box 16600
Austin, TX 78761-6600
Four claim centers, as well as the Austin office, also process prizes of up to $5 million: the Dallas, Fort Worth, Houston and San Antonio centers all pay our checks up to this amount. All prizes of more than $5 million, including any jackpot which is to be paid out as an annuity, must be claimed at the lottery’s headquarters.
To claim your prize, you will need to provide your winning ticket and identification. Acceptable forms of ID include a valid driver’s license, state-issued identification card, birth certificate, passport, resident alien identification, student ID card and social security card.
You have 180 days from the date of the draw to claim Powerball prizes in Texas. Any prizes not claimed in this period will be used to support education and veterans in the state.
The table below shows the addresses and contact details of the local claim centers in Texas. Opening hours for each office are 08:00 – 17:00 local time.
|Abilene||209 S. Danville |
Abilene, TX 79605
|Amarillo||7120 IH-40 West, Suite 110 |
Park West Office Centre
Amarillo, TX 79106
|Austin||611 E. 6th Street |
Austin, TX 78701
6444 Concord Rd.
|Corpus Christi||4639 Corona |
Corpus Christi, TX 78411
|Dallas||8700 N Stemmons Freeway|
Dallas, TX 75247
|El Paso||401 East Franklin Avenue |
El Paso, TX 79901
|Fort Worth||4040 Fossil Creek Blvd. |
Fort Worth, TX 76137
|Houston||1919 N. Loop W. |
Houston, TX 77008
|Laredo||1202 Del Mar Blvd. |
Laredo, TX 78045
|Lubbock||6202 Iola Ave Suite #900A |
Lubbock, TX 79424
|(806) 783-0602 - Main line|
(806) 783-0613 - Line 2
|McAllen||4501 West Business 83 |
McAllen, TX 78501
|Odessa||4682 E. University |
Odessa, TX 79762
|San Antonio||9514 Console |
San Antonio, TX 78229
|Tyler||3800 Paluxy Drive |
Tyler, TX 75703
|Victoria||2306 Leary Lane,|
Victoria, TX 77901
You are allowed to remain anonymous if you win a prize of $1 million or more. However, if you choose the annuity option and decide to take the money in 30 yearly instalments rather than a lump sum, you will lose your right to anonymity 30 days after claiming the prize.
Texas Lottery Winners From Humble
When you buy a Powerball ticket in Texas, 64 percent of the money goes towards the prize fund. A small amount is set aside for the cost of lottery administration (4 percent) and retailer commissions (5 percent) and the rest is reserved for good causes.
The big winner is Texas education, with 25 percent of the revenue funneled into the Foundation School Fund. In the 2018 fiscal year, the Texas Lottery transferred $1.43 billion to the fund, helping to support public education throughout the state. A small percentage of Texas Lottery revenue (0.4 percent) is also donated to a fund to help veterans and their families.
Texas Lottery Winners 2021
Texas created its first jackpot winner on May 29th 2013, when Paul McDowell from the small northern town of Ravenna in Fannin County claimed $40 million. How to play whales of cash. He said he might buy ‘a few cows, a couple of tractors and a new car’, but he was mostly looking forward to enjoying his retirement.
Texas Lottery Winners In Houston
The Lone Star State’s biggest win came a couple of years later, with the lucky player claiming their money on behalf of an anonymous trust. They matched the full winning line in the $564 million drawing on February 11th 2015, along with two other ticket holders. Each winner received a $188 million share of the jackpot.