Here’s a question we get a lot from folks who wonder about the withholdings that apply to lottery prizes compared to other types of winnings, such as prizes claimed at a casino or in a raffle. There are different laws that apply in each of those instances, and our expertise is obviously in the law as it applies to the Iowa Lottery!
The Iowa Lottery does not withhold tax for prizes of $600 or less. By law, prizes of more than $600 will face 5 percent state withholding. If a player wins a prize of more than $5,000, an additional 25 percent federal withholding will apply when the prize is claimed.
All winners of prizes of more than $600 will receive a Federal Form W2-G from the Iowa Lottery. The form shows the prize you won and all taxes withheld. You’ll need to include that form and the information from it when you file your income taxes for the year in which you claimed your prize.
The withholdings are a credit toward the taxes owed -- winners may get some of it back, or they may have to pay more, depending on their income.
For prizes won in a particular calendar year, the lottery will mail out Form W2-G to our winners no later than Jan. 31 of the following year. If you’ve won a prize of more than $600 and you’ve moved since you claimed the prize, be sure to contact us at 515-725-7900 and provide us with your updated address. That way we’ll mail your W2-G form to the right place!
nice blog.
Posted by: maryjane | May 18, 2017 at 12:06 AM
Hi Terron,
Unfortunately, no. Lottery winners' information is public here in Iowa. Lottery winners cannot claim prizes anonymously.
Posted by: Mary Neubauer | May 10, 2017 at 01:39 PM
Can you remain anonymous on winning scratch tickets.
Posted by: Terron Brown | May 07, 2017 at 08:18 PM