You have to file (and pay if necessary) your taxes by midnight tonight. The post office will work late to make sure you have your package postmarked with today's date. You are required to count all Lottery winnings as income, but the good news is you may be able to subtract the amount you lost gambling from the amount of money you won. If you keep detailed records, you might be able to prove that those two amounts cancel each other out and that you owe no additional taxes.
The Lottery reports all wins over $600 to the Internal Revenue Service. We withhold four percent state taxes for wins over $600 and 25 percent federal taxes from your winnings over $5,000. Depending on your tax bracket, you could owe more than what was withheld. That's why it's a good idea to track what you win and what you spend on the Lottery and other forms of gambling. Be sure to file non-winning tickets and other records away for at least three years in case the IRS decides to audit you. They will require some proof that your math adds up. Questions? Check with the IRS or your tax preparer.
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