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NC tax lottery winnings withholds 24% of federal taxes.
Definition of tax on lotteries
Their is a amount of deduction as TDS of 30.9% which is a flat tax on the winning amount, it will not be added to our income and we will not be able to benefit from our income tax rate slab. The prize money will be considered as separate from our income, and our regular income will be taxable as per our income tax rate slab.
The lottery of NC automatically withholds 24% (in this case, $222.984 million) for federal taxes on all prizes over $5,000. And North Carolina charges taxes any lottery winnings over $600 as an income. In2022, the individual income tax rate is 4.99%, which means that the lottery would withhold about $46,362,090.
Learn more about lotteries from the link given below.
https://brainly.com/question/14971943
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