Compilation of Rules and Regulations of the State of Georgia
Department 560 - RULES OF DEPARTMENT OF REVENUE
Chapter 560-7 - INCOME TAX DIVISION
Subject 560-7-8 - RETURNS AND COLLECTIONS
Rule 560-7-8-.39 - Withholding On Proceeds Paid By the Georgia Lottery Corporation

(1) Definition of Resident and Nonresident. O.C.G.A. § 48-7-1 provides the definition of both residents and nonresidents.

(2) Authority to Tax Lottery Proceeds. O.C.G.A. § 50-27-24(a) provides the authority to tax all proceeds of any lottery prize regardless of the amount.

(3) Lottery Prize Proceeds Subject to Income Tax Withholding. Lottery prize proceeds of more than $5,000 are subject to income tax withholding in accordance with O.C.G.A. § 48-7-101.

(4) Withholding From the Proceeds Paid to a Georgia Resident or Nonresident. For prize proceeds of more than $5,000 from a play with any lottery conducted by the Georgia Lottery Corporation, all such proceeds shall be subject to withholding in an amount equal to the maximum marginal rate provided in O.C.G.A § 48-7-20 multiplied by the proceeds. The Georgia Lottery Corporation shall issue to the recipient of such prize a W-2G showing the amount of the lottery prize proceeds and the amount of income tax withheld. The Georgia Lottery Commission shall remit income tax withheld on the proceeds to the Commissioner of Revenue as prescribed in the State income tax laws.