Tax the lottery win - how it works
Related Videos: Lottery Taxes - How Much Tax Is If You Win The Lottery (May 2024).
Most players assume that they do not have to pay tax on a lottery win. In general, this is also true. However, there are exceptions.
Tax the lottery prize - usually not necessary
If you were lucky and won the lottery, you probably don't want to leave any of this to the tax office.
- You usually don't have to. You do not have to pay tax on winning the lottery. The amount of the profit does not matter.
- If you frequently take part in the competition successfully, lottery can become a source of income. The tax office can evaluate this as regular, additional income.
- If the tax office recognizes this income as regular income, you must tax the income.
Income from the profit is taxable
If you invest your lottery profit profitably, you must report the income to the tax office.
- If you invest the money in a property, for example, and rent it out, you must of course also tax the rental income.
- This also applies to interest on the lottery win if you leave the money in the bank.
- Income from shares or other investments that result from the money won are also subject to tax.
Lotto: Be careful - you have to be careful!
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