rn for the year that you received it. In some cases, you can delay paying taxes on your winnings by taking it in installments.
The good news is that you can spread the tax burden out over time. If you don’t want to pay taxes on the prize right away, you can take it in installments over 30 years, which will lower your overall tax bill. Another way to minimize the tax bill is to donate the prize to a favorite charity. This will allow you to make use of itemized deductions and move into a lower tax bracket.