In Washington state, lottery winnings are subject to federal taxes, but there are no state income taxes on lottery winnings. Winners must report their winnings as income on their federal tax returns, which may be taxed at rates up to 37%, depending on the total amount won and other income. Additionally, the IRS requires withholding on larger winnings, typically around 24%. It's advisable for winners to consult a tax professional for guidance on their specific tax situation.
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