Pa. State Lottery winnings are fully taxable for federal income tax purposes
but are not subject to Pennsylvania income tax.
For federal purposes, you can reduce gambling income by gambling losses,
but you need to prove your losses. (Start keeping those losing tickets!)
Dan Evans **********************
*This is not legal advice unless
*you agreed to pay for it.
*http://www.netaxs.com/~evansdb
>My Daughter hit the Pa Lottery for 2,500 my question is do she have to
>report this on her Federal and State taxes. I was told that you didn't
>have to report the first 2,500 any help would be appreciated.
Yes, to federal. No to PA as long as she is a PA resident.
Helen, EA in PA
Member of NAEA, NATP and the Tax Gang