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If all this sounds confusing to you personally, you are not alone. The IRS publishes an article termed Tax Subject matter 419 that assists you find the right forms, publications, and data associated with gambling taxes.
Winnings are withheld on a federal level any time you acquire greater than $five,000 from sweepstakes, swimming pools, or lotteries, along with the winnings are a minimum of 300x the amount wagered. Notice this is in addition to any state-amount tax and withholding specifications.
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