Is grant or award money taxed?<p>I&#x27;ve read stories about people in the US who win a not huge but not small lottery prize of say $1 million don&#x27;t do so well.<p>By the time they pay all the taxes and get bumped up a tax bracket or two spend a few hundred thousand they probably owe even more.<p>In Canada lottery wins are not taxed but the interest is. But even so many &quot;poor&quot; people and that&#x27;s a broad term end up blowing it all.<p>I&#x27;ve seen fishermen who made $30,000 a year go work in oil fields and seem to treat $100,000 like it&#x27;s play money.