Are lottery winnings considered income?

Fixing my taxes... are lottery winnings considered income?

Answers( 1 )

It depends on where you are located. In the UK, lottery winnings are not considered as income. Consequently, they are not taxable:

However, when you decide to put your money in your account, it will be part of your estate. It will then be subject to a 40% inheritance tax if your total estate value is higher that £325,000.

On the other hand, in the US, lottery winnings are considered as income. Hence, they are taxable. Keep in mind that the tax rules for lottery winnings vary from country to country. Needless to say, it is always best to consult an accountant from your country to know whether your lottery winnings are taxable or not.