I think once the full story comes out, it may reveal both the store owner and the customer had dirty hands. Anyone who read their ticket close enough to know they have won $1000 probably also read the cashing instructions on the back of the ticket close enough to know the store couldn't cash a ticket worth more than $599. 

I've heard of people selling lottery tickets of that prize amount to avoid going to a bank, showing ID and reporting the winnings as income.

Last year, Judge Judy had a NY case where someone asked someone else to cash in their winning ticket worth $1000 claiming they didn't have proper ID and the person only gave them back $500 so they sued for the rest.  Judge Judy after a short lecture on people trying to be slick concluded they both had dirty hands and threw the case out.

I think once the full story comes out, it may reveal both the store owner and the customer had dirty hands. Anyone who read their ticket close enough to know they have won $1000 probably also read the cashing instructions on the back of the ticket close enough to know the store couldn't cash a ticket worth more than $599. 

I've heard of people selling lottery tickets of that prize amount to avoid going to a bank, showing ID and reporting the winnings as income.

Last year, Judge Judy had a NY case where someone asked someone else to cash in their winning ticket worth $1000 claiming they didn't have proper ID and the person only gave them back $500 so they sued for the rest.  Judge Judy after a short lecture on people trying to be slick concluded they both had dirty hands and threw the case out.

That's what I was saying in my above post, RJOh. The whole story sounds a bit fishy to me.  By the way, I saw Judge Judy on Larry King a couple of times and was very impressed with her, although I really haven't followed her tv show. 

On another subject, it's interesting that you brought up Judge Judy.  We're always talking about what it would be like to be wealthy & famous after winning the lottery.  According to Forbes, Judge Judy earned $28 million in 2005 (and I'm not including the income of her husband, Judge Gerry who also had a TV show & served on the NY Supreme Court.)  I've worked in stores where she shops. I have a couple of friends who work in salons where she's gotten a facial or a hair cut.  This is why I don't understand all the hooplah about "OMG!  How am I going to live with all this money and stay sane?" or the stories about people's lives destroyed by having money, when many jackpots aren't even close to what a celebrity makes in a year!  I don't personally know anyone famous,  but I always read about people running from the press and fighting with the paparazzi.  Yet I've never seen any bodyguards following Judge Sheindlin and she shops at outlet stores and thrift shops.    

Rjoh, thank you for filling in the fact that your group was well to do prior. Not sure how your  co workers had to end up paying out 55% in federal tax, but hey, they must of worked aLOT of overtime. In my state they pre-deduct the first 25% of federal so a person doesnt have to pay such high amounts ...So if your associates had to pay in 30% more for a jackpot claim after having the first 25% deducted,Id suggest getting a new accountant or finding a better calculator. Federal is capped between  33-38%...

My suggestion of banking a certain percentage is noteworthy and most accountants would advise such. 

MD. has retailer plus stores,  they cash up to $5K tickets, you can cash $5K all day long.  You show your drivers license fill out a form they give you a check for $5K, one week later you get a w-2G from state of MD with all the ticket info and $5K taxable income.  You then settle taxes at the end of the year.  Anything more you to headquarters. MD P4's, P3's  all print on separate tickets you can't have a P3 or P4 worth more than $5K each (keeps the lottery retailers busy and making money).

 LOL jarasan