The Non-Cash payouts are no longer equal payments, and are now annuitized, starting lower and increasing each year by about 4-5% depending on the lottery you are playing. But that’s not actually the highest bracket of federal income tax. Big jackpots are instead taxed at 39.6%.Bear in mind that these are only the federal taxes. But that’s not actually the highest bracket of federal income tax. Big jackpots are instead taxed at 39.6%.Bear in mind that these are only the federal taxes. I did not use the card for a purchase, or for any other reason. IRS takes goes up to 28%.The total tax bottom line on your $930 million windfall, should you choose the lump sum payout, is about $368.3 million, meaning you only get to pocket nearly $562 million. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Bankrate may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on certain links posted on this website. Powerball jackpot has generated a lot of speculation about the best ways to spend that much money. Delaware, and Pennsylvania do not tax state lottery winnings. Arizona and Maryland have separate resident and non-resident withholding rates. In New York, residents of New York City and Yonkers face additional withholding. New York State Lottery. The information contained in this website is provided for informational purposes only. Every effort has been made to ensure that the winning numbers and other information posted on this website are accurate. No valid claim may be based on the winning numbers or other information contained on this website. The information should always be verified by contacting the Official Lottery before it is used in any way. In the event of a discrepancy between the numbers posted on this website and the official winning numbers, the official winning numbers shall control. Most people don’t think about taxes on their way to the track or casino, but what might seem like nothing more than the chance to win some extra money actually carries significant tax consequences. IRS Form W2-G. W2-Gs are not required for winnings from table games such as blackjack, craps, baccarat, and roulette, regardless of the amount. Note that this does not mean you are exempt from paying taxes or reporting the winnings. You would also need to report any awards or prize money you won during the year in question. Instead, if you itemize, you can offset taxes owed on your winnings by reporting any losses you incurred as well. You are allowed to claim as much as the total amount won that appears on 1040, which would eliminate your taxable gambling income. Just be sure any deductions taken this way (in combination with other itemized deductions) are higher than the standard amount. IRS, many state governments tax gambling income as well. Unfortunately, states have their own unique formulas and rules for gambling income. Some levy no gambling taxes at all. Others charge a flat percentage, while still others ramp up the percentage owed depending on how much you won. When in doubt, refer to your own state’s policies before gambling. In New York, you head for any New York Lottery retailer and pick up a player’s card featuring 10 game panels. Use a blue or black pen or pencil to mark six numbers between one and 59 and hand over your money. If you hate making decisions, go the Quick Pick route and have the state’s lottery computer pick your six numbers. New York Lotto game winner since the drawing is broadcast live on select area television stations on Wednesday and Saturday nights at 11:21 p.m. The host draws seven numbers -- the extra one is a bonus number to determine a second prize winner. If your numbers are drawn, claim your prize within 60 days by turning your card into a Lotto retailer. At that point, the numbers are verified, you will be given a choice of a lump sum payment or a longer term payout. It deducts them from your winnings. Typical tax withholding rates assessed by the federal government for New York Lotto winners range between 25 percent and 28 percent. The State of New York withholds 8.82 percent of your winnings, and if you live in New York City, the Big Apple takes a bite equaling 3.876 percent. If you live in Yonkers, the local withholding is 1.323 percent. She has authored and co-authored 14 books and penned hundreds of articles in consumer and trade publications, including the Illinois-based "Daily Herald" newspaper. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system.