In the Ohio lottery managed by the Ohio Lottery Commission, winners are gotten every day. There are various categories to win from, there is a progressive jackpot games section that updates every 2 minutes. In this section, players select random numbers depending on which jackpot they are playing, three numbers are selected at the pick 3 game, four numbers are selected as well at the pick 4 game, while five numbers are selected at the pick 5 and rolling cash 5 games, and finally, six numbers are selected at random by players for the lucky for life and classic lotto games. After selecting the game to play, and selecting your random numbers, you will be required to pay for a ticket worth the amount you are willing to stake. Let us know about ohio lottery tax in this article.Here we discuss how to win ohio lottery tax.These will give some information about the tax of ohio lottery .
While a lot of people lose money daily to Ohio Lottery, a small percentage wins now and then. Ohio laws and federal laws require winners of lotteries to pay tax on their winnings. No matter how little or large the win is, 25% goes to federal tax, then Ohio charges 4% for state tax. For residents of Texas, this tax is deducted before their winning is reimbursed to them.
How to Redeem Winnings on Your Ticket?
After confirming that your ticket is a winning ticket, to make the redemption process easy and to ensure security in redeeming winnings on tickets, there are different ways to redeem winning tickets of different amounts. Some amounts require that you cash your tickets in person, while you can use the Ohio Lottery App to claim some. Here is how it is determined.
- For ticket winnings under $50, you can walk into the nearest Ohio Lottery retailer to cash in your ticket immediately. This win is relatively small, hence winners do not need to go through much hassle to get their wins.
- For ticket winnings between $50 and $599, there are two ways to cash in your winning in this category. Either walk into the nearest Ohio Lottery retailer with your ticket to cash in your wins or claim your prize on the Ohio Lottery Mobile App. On the app, a mobile cashing feature is available to attend to in-app cashout for winners.
- For ticket winnings between $600 and $4900, winners are required to visit an Ohio Lottery retailer to authenticate the win and get a pay-to-bearer receipt issued by the retailer. This pay-to-bearer receipt is used to file a claim form online with Ohio Lottery or sent through the mail to the lottery commission physical office address.
- For ticket winnings above $5000, the procedure is quite similar to winnings between $600 and $4900, the winning ticket first needs to be validated at the Ohio Lottery retailer nearest to you. After getting this done, mail your pay-to-bearer receipt, ticket containing the winning numbers, and claim form to The Ohio Lottery Commission, The Lausche Building – Room 452, 615 West Superior Avenue, Cleveland, OH 44113. Once received, your winning is processed within 30 days and reimbursed to you.
- For the Mega Millions, Powerball, Classic Lotto, or annuity prizes categories, the entire process is different. Winners will make appointments with the regional office to file their winning claims in person. This is to avoid impersonation, theft, or transfer of winnings.
How winnings are taxed?
- Federal tax – on every lottery winning, federal tax law requires that 25% is withheld. This means that if a ticket wins $1000, $250 is deducted as federal tax. For winners that do not reside in Ohio or the U.S, this deduction is not automatic, please make sure to account for it when your taxes are being filed.
- State of Ohio tax – an additional state tax is withheld from the total prize money. It is deducted automatically for residents of Ohio and the U.S. However, winners that live outside the U.S are required to account for it while filing their taxes.
- Other Deductions – Ohio laws allow interception of lottery wins by agencies. Agencies like the Ohio Department of Job and Family Services, the office of the Attorney General, etc. on an account of child support debt, spousal support, or state debt.
Conclusion
In conclusion, every lottery winnings are taxed and Ohio lotteries are no exception. The federal tax stands at 25% per winning while the state of Ohio deducts 4% before winning proceeds are paid to the winner. This tax, however, might be more if the winner owes the government child support, fine charges, spousal support, and many more. Also, large wins are paid in person to winners at Regional offices to avoid impersonation of winners.
Frequently Asked Questions
Q: Can I purchase my Ohio lottery ticket online?
A: Yes, Ohio allows users to purchase tickets online using payment methods like Apple Pay, Credit Cards, etc.
Q: Who is eligible to play Ohio Lottery games?
A: Ohio Lottery games are open to 18 years and above citizens of the U.S who reside anywhere in the world. Provided proof of citizenship is available to claim your win.
Q: How long does it take to reward Ohio Lottery winners?
A: This is dependent on the amount won. Small unit wins can be processed and claimed within minutes but bigger wins are subject to more verification and processing. Some amounts even require you to appear in person at the regional office.
