Why are lottery winnings not taxed in America?

13 Answers

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  • 2 months ago

    They are.  It's income.

  • 2 months ago

    They are actually very heavily taxed!

  • D1218
    Lv 6
    2 months ago

    A whole different country.

  • 2 months ago

    Federal taxes are taken out of your winnings.  Depending on the state, which usually gets a percentage of the "take" anyway, you might not be taxed by the state.  Or you might.  Depends on how the lotteries are licensed.

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  • 2 months ago

    They are taxed and if you owe the government money they will take it out your winnings 

  • 3 months ago

    They are in The United States of America, but not sure about the other Americas

  • Jay P
    Lv 7
    3 months ago

    In the US, they are.

    But staying within North America, in Canada, lottery winnings are tax-free.

  • 3 months ago

    They are, brilliant question.

  • Mog
    Lv 7
    3 months ago

    They are taxed. It’s called a “gift tax” but the lottery commission pays the tax before the winnings go to the winner. 

  • Anonymous
    3 months ago

    They are taxed. 

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