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How are American or Canadian tourists taxed if they win the lottery while vacationing in Canada or the US?
I see. Is there a threshold in lottery winnings that triggers taxes in the US or Canada?
Yes, there is. In the US, if your lottery winnings are $5,000 or more, the lottery agency will withhold 24% for federal taxes. If your winnings are $600 or more and at least 300 times the amount of your ticket, the lottery agency will also issue a W-2G form for tax reporting purposes. In Canada, there is no specific threshold for lottery winnings that triggers taxes, but any interest earned on the winnings is taxed as income.