Is winning the lottery considered earned income?

[kayode10]

There are some people out there who choose lottery as a way of getting rich quick. This is the reason why you see them following every news pertaining to lottery as if their lives depend on it.

One of the questions I want to ask you people over here is that Is winning the lottery considered earned income? I will be glad if anyone you can tell me his opinion regarding this question in the comment section.

 

[James108]

From a tax perspective, lottery winnings are considered unearned income, as they are not derived from employment or business activity. However, from a financial perspective, some would argue that winning the lottery is a form of income that has been earned through luck.

 

[Qwert135]

Most of the lottery income in most of the countries are considered as assets and the governments charge upto 30% tax one time on such amounts and spend them in various things for community .

 

[swift]

I feel winning the lottery is not considered earned income. Instead, it is classified as unearned income, as it is not derived from work or services rendered but rather from luck or chance. This means that lottery winnings are generally not subject to payroll taxes or Social Security and Medicare taxes

 

[Lazza]

For federal and state tax purposes, lottery winnings are treated similarly to wages or salaries as ordinary taxable income. This implies that the tax treatment of lottery winnings is the same as that of other types of income.