In addition to federal taxes, state taxes can also play a big role in determining your total tax liability. Every state has its own lottery taxation coverage; some don't tax lottery winnings in any respect, whereas others can impose rates as steep as eight.84% in areas like California. Depending on the place you declare your lottery ticket, your state tax obligations will vary. For example, when you win a $1 million jackpot and also you reside in a state that imposes a 5% tax on lottery winnings...