Since your winnings are greater than $600. 01, you will pay Federal Income Tax on that $1,000 - and 6% state tax on your winnings. File w-2g if taxes were withheld.
The $1000 lottery winning will be taxed on what ever your tax rate is, unless you are able to take your losses on Schedule A to offset it. If that was your only income, you wouldn't pay any tax at all!
