Despite law changes, lottery winners will face big tax bills

DES MOINES, Iowa (AP) — Pity the Powerball and Mega Millions lottery game winners.
Federal tax law changes would seem to promise that those who beat the odds and win a jackpot could keep more of their winnings from the government. But even as the new law cut top federal income tax rates, it also reduced the ability to deduct state taxes.
There are exceptions, as 10 states including California, Texas and Florida don’t tax lottery winnings. But in most of the country, the newly rich wo