Big Tax Hike on Lottery Winnings
If you are living in some of the 40 states with a state source of revenue tax, taxes on a large PowerBall or Megamillions win simply greater dramatically. The explanation why is the brand new deductibility prohibit on state taxes below the 2018 tax legislation. Although the highest Federal price dropped 2.6%, state tax deductions at the moment are restricted to $10,000. So in case your state tax price is five.2%, you’ll be able to pay two times over for the Federal price lower. As with all tax rewrites, there is some winners and a few losers.