If a lottery prize winner transfers the prize to a qualified government unit or nonprofit organization, then the prize is excluded from the winner's gross income if the amount of the prize does not exceed 30% of the winner's AGI.

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The exclusion from the winner's gross income for transferring a prize to a qualified government unit or nonprofit organization does not depend on the prize amount being less than 30% of the winner's AGI. The tax treatment of such a transfer is based on specific IRS rules and charitable contribution guidelines, not a percentage of the winner's AGI.

If a Lottery Prize Winner Transfers the Prize to a Qualified