You deduct your gambling losses for the year on Schedule A (Form 1040). You must report the full amount of your gambling winnings for the year on IRS Form 1040 in order to deduct gambling losses. Additionally, IRS Form W-2G will be mailed to you in January for any prizes claimed in the amount of $600 and over. As the Maine State Lottery or its employees cannot provide you with financial advice, we suggest you consult with a tax professional. The final tax amount owed will depend on your personal tax situation. It is important to understand that the taxes withheld, if any, may not cover your entire Federal or State tax obligations. The Maine State Lottery will withhold Federal and State taxes at 24% and 7.15% respectively on prizes over $5000. Will there be any taxes withheld from my winnings ? The remaining annual payments will be made to the estate of the deceased. What happens if a Megabucks or Powerball winner dies before collecting all the annual payments due ? These programs and services support the citizens of Maine. The proceeds from the sale of lottery tickets go to the programs and services supported by Maine?s General Fund. If it isn't, please feel free to contact us at the Maine State Lottery office 1(800) 452-8777.
We hope that your question will be answered by one of the responses listed below. Common questions about the Lottery are answered below.
