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Pub-130, Withholding Illinois Income Tax for Purchases of the Rights to Lottery Winnings

Contents

  1. Do I have an obligation to withhold Illinois Income Tax from purchased lottery winnings?
  2. When must I withhold Illinois Income Tax from purchased lottery winnings?

Do I have an obligation to withhold Illinois Income Tax from purchased lottery winnings?

You must withhold Illinois Income Tax from the purchase price of rights to future Illinois lottery winnings that you purchased from another entity. The Illinois Lottery notifies us of the purchase and we send instructions to you on how to remit the Illinois withholding to us. Make sure to follow the instructions you are sent and use the account number we assign to you.

When must I withhold Illinois Income Tax from purchased lottery winnings?

You must withhold Illinois Income Tax at the time you purchase the lottery rights. You must register and report the withholding for each purchase on Form IL-941. For more information, refer to Informational Bulletin FY 2014-08. The tax is withheld at the current income tax rate. What forms must I submit to the Illinois