Lottery Taxes: The Triple Tax Effect

​Many people dream of winning it big in the lottery. News media outlets publicize the large unclaimed pots of money on the evening news and they put a spotlight on the lucky multi-million dollar winners. Ever wonder what the tax math looks like?

​The bottom line, when seen from a wage standpoint, is that 75% or more of the income used to play the lottery does not end up in the hands of the winner.