Lottery winnings are taxed, with the IRS taking taxes of up to 37%. Depending on whether your state taxes lottery winnings, you may have to add state taxes too. We all file tax returns, and have to pay then, but there are withholding taxes taken out of lottery winnings. One case upheld a 20-year-old oral agreement to split lottery winnings. Some suits over lottery winnings are with co-workers and (former) friends.

Source: Forbes January 22, 2021 22:30 UTC