Unlike money found, winnings are taxable.ĭid you know taxes on winnings should be reported as ordinary income? Yes, it’s true.
So before going on a shopping spree, there is one caveat you should know. While winning money might feel just as good as discovering money in your pocket, the two are very different for tax purposes. Editor’s Note: Are taxes on prize winnings reported on your tax return? What about taxes on lottery earnings? We’re here to tell you!Įver find cash in a jacket or a pair of pants you haven’t worn in a while? Feels great, doesn’t it? It’s the kind of money you weren’t counting on that can help with a looming bill or be spent on something you could not otherwise justify buying.
