As a result, winners who receive a cash prize or an annuity payment after January 1, 2016 must report those payments as taxable income on a PA Schedule T when filing a Pennsylvania Personal Income Tax Return for 2016. This includes payments in 2016 from annuities or other cash prizes claimed before 2016.
The Pennsylvania Lottery will automatically withhold PA personal income tax on prizes greater than $5,000 claimed after July 12, 2016. Winners of over $600 during the calendar year will receive a W2-G form by mail in late January or early February of 2017.
Winners with questions about their individual tax liability should consult a qualified tax professional prior to filing their tax return.
Winners who received monetary prizes between January 1 and July 12, 2016 may be required to make estimated tax payments to the Department of Revenue. Payments can be made easily and securely through Make a Personal Income Tax Payment or by completing form PA-40ESR (I) and mailing a check to: PA Department of Revenue, PO Box 280403, Harrisburg, PA 17128-0403.
For more information, please contact the department through the Online Customer Service Center.