CLAIM A PRIZE & TAX REQUIREMENTS
Have you got a winning ticket? Congratulations!
Here you will find instructions on how to claim a prize and information on tax requirements related to your prize.
If you're reading this page, it means one of two things: You've won the lottery, or you're an extremely positive thinker. Either way, congratulations are in order.
Now comes the fun part: claiming your prize. Just follow these directions and you'll be on your way.
First, sign the back of your ticket immediately. Then take it to any New Jersey Lottery Retailer for validation. If your prize is worth $599.50 or less, you can receive your winnings in cash at any New Jersey Lottery Retailer.
If your prize is over $599.50, you must file a claim form with the New Jersey Lottery. Claim forms are available at all New Jersey Lottery Retailers or at New Jersey Lottery Headquarters. It takes approximately three weeks to receive a check from the New Jersey Lottery. Proper identification for tax purposes must be presented at the time of the claim for reporting to the Internal Revenue Service.
For out of state winners, download, fill out and print the Claim Form and instructions. The New Jersey Lottery also suggests that you make a copy of your Claim Form and the tickets (front & back) in the rare event of a delay or loss in the mail. Staple your signed tickets to the Claim Form. Enclose the Claim Form and tickets in an envelope and mail to:
NEW JERSEY LOTTERY
P.O. Box 041
Trenton NJ 08625-0041
Tax Requirements for Lottery Prizes
Federal Income Tax. Federal law requires the New Jersey Lottery to withhold 24 percent from any prize in excess of $5,000. A higher federal withholding rate of 30 percent applies to any prize of $600 or more paid to a winner who does not furnish a taxpayer identification (social security) number.
New Jersey Gross Income Tax. State law requires the New Jersey Lottery to withhold State tax at the rate of 5 percent from any prize in excess of $10,000 and up to $500,000 or 8 percent from any prize in excess of $500,000. The higher State withholding rate of 8 percent also applies to any prize in excess of $10,000 paid to a winner who does not furnish a taxpayer identification (social security) number.
Tax Returns. After the end of the year, each winner will receive a Form W2-G report showing the amount of Lottery prize payments to be reported as income and the amounts of federal and State taxes withheld to be reported as credits on the winner's federal and State tax returns.
Additional Information. For additional information about taxation of Lottery prizes, visit the US Internal Revenue Service website, the New Jersey Division of Taxation website, or consult a professional tax advisor.