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Our State tax rate changed for 2022 from 6.9% to 6.75%. This is what the lottery website shows:
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We are required by law to withhold both state and federal taxes on certain levels of Lottery prizes.
For U.S. citizens furnishing Social Security Numbers, we are required to withhold 6.9% for Montana state tax and 24% for federal tax from any prize greater than $5,000.
However, there are other situations where the typical withholding requirements differ. Here's the law:
We are always required to withhold 6.9% state tax on all prizes greater than $5,000.
We are required to withhold 24% federal tax on any prize $600 and over for U.S. citizens who don't furnish Social Security Numbers or tax identification numbers.
For non–residents of the U.S., we must withhold 30% federal tax on any prize $600 and over.
At the end of the year, we mail each winner who has won $600 and over a W-2G form to use when filing his or her taxes.
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