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EuroMillions and US Taxes

Topic closed. 22 replies. Last post 9 years ago by Chewie.

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danisiri's avatar - Avatar all_for_Jesus.jpg

United States
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April 11, 2005
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Posted: August 17, 2005, 2:24 am - IP Logged

It is my understanding that EuroMillions does not take tax out of the jackpot prize.  My question is do the US government and/or state governments tax the winnings if a US citizen wins the jackpot and "brings" the money into the U.S. (e.g., invests it in U.S. banks, etc.)?

I looked this up on the internet and the best I could find was that all foreign income is considered taxable by the government if the person is a U.S. citizen.  The only way that the income is exempt is if the person is physically employed in the foreign country and has resided there for most (330 days) of the tax year.

Given the above information, even if I were to play Euromillions and win (as a U.S. citizen), I still would be taxed.  The primary benefit to Euromillions that I can see is that the jackpot amount announced is the actual jackpot received (or am I wrong on that too?!).

Any comments or advice, anyone?

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    New Mexico
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    Posted: August 17, 2005, 10:23 am - IP Logged

    Unless they've changes the laws recently I think you're correct on the tax part.  The difference is that the taxes wouldn't be confiscated before you recieved payment.  But you'd still have to pay them by April 15, the following year, if you were still a US citizen living within the reach of the long arm of the IRS.

    As for State taxes, you'd owe them, also, unless you had an address in Texas or WA to live in while you collected your winnings.

    Jack

    Absorb the good, ignore the bad, weigh the ugly.

    It's about number behavior.

    Egos don't count.

     

    Dedicated to the memory of Big Loooser

     

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      Poway CA (San Diego County)
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      Posted: August 17, 2005, 10:31 am - IP Logged

      Unless they've changes the laws recently I think you're correct on the tax part.  The difference is that the taxes wouldn't be confiscated before you recieved payment.  But you'd still have to pay them by April 15, the following year, if you were still a US citizen living within the reach of the long arm of the IRS.

      As for State taxes, you'd owe them, also, unless you had an address in Texas or WA to live in while you collected your winnings.

      Jack

      Don't forget Nevada!  No income tax.

       

        Todd's avatar - Cylon 2.gif
        Chief Bottle Washer
        New Jersey
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        Posted: August 17, 2005, 10:34 am - IP Logged

        You would only have to pay taxes on what you brought into the country, which one of the reasons that winning a European lottery (for an American) is so awesome.

         

         

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          USA
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          Posted: August 17, 2005, 10:45 am - IP Logged

          I have to agree with Todd, a swiss bank account would be mighty enticing.

            BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
            Magnolia, Delaware
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            Posted: August 17, 2005, 10:55 am - IP Logged

            Why bring the winnings to the US for? Why not just leave it there in a bank? It's not like your not going to go on vacation in the near future! Why not just spend spend spend while on vacation somewhere in Europe! I'd used the new American Express travelers card for my spending habits while in Europe or anywhere for that fact, but not in the US though! Remember it's not cash, it's just like your debit card but not linked to a checking account in any country! It's better than the paper traverlers checks!

            Aww I see some light bulbs going off! Cheers Just keep charging the card up as you use it! If you used it in the States while being a US citizen the items you bought could be taxed by the IRS, possibly? Now don't quote me on that, by all means, please don't.

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              New Mexico
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              Posted: August 17, 2005, 11:07 am - IP Logged

              Intriguing possibilities to all this.

              All the World Bank and money laundering meddling has changed a lot of things over the past few years.

              My impression is that Swiss banks are subject to the scrutiny of the US nowadays, as are some of the other offshore institutions.  But Costa Rica might still be an exception.  Probably some other places if a person checked around.

              Likely as not a person could become a US Representive of some unheard of Corporation in the Caymens or Costa Rica, keep his salary down to just under the right dividing line on the IRS rules, and be able to live in the US without getting any flak.

              Beats having to go around singing the old Jimmy Buffet song, "Down in the bananna republics".

              Jack

              Absorb the good, ignore the bad, weigh the ugly.

              It's about number behavior.

              Egos don't count.

               

              Dedicated to the memory of Big Loooser

               

                BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
                Magnolia, Delaware
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                Posted: August 17, 2005, 11:08 am - IP Logged

                Swiss bank account! No, No, NO! The swiss now collaborate with the IRS when asked about US clients and their accounts! All the IRS has to say is that they think the money is from illicit activies, such as drug sales or even now terriorist fund raising! Think about it, many countries now work with the US when before they never did and I wouldn't put it past our Goverment to use false statements to get the info they wished to obtain on anyone, anywhere in the world!

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                  Sparta, NJ
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                  Posted: August 17, 2005, 11:16 am - IP Logged

                  Those AmEx TC cards are severly limited on the max value. From the web site:

                  Quantities & Amounts
                  Your Card must start with a minimum load of $300 and a maximum of $2,750, which is also the maximum you may load on your Card(s) during any 14-day period. You can order up to 4 Cards at a time. Their total combined value cannot exceed $2,750. There is a $14.95 issuance fee per Card. You may purchase the Card in US Dollars ($), Euros (€) or Pounds Sterling (£).

                  Payment Options
                  For purchases made on this website, you may use American Express® Cards and Visa® or MasterCard® debit cards. Visa or MasterCard credit cards are not accepted.

                  Shipping Details
                  Please allow 10 business days for delivery while we emboss and personalize your Card, and ship it to your billing address only. Express shipping is available, and your Card will be delivered within 6 business days for a cost of $9.95.

                  If you hit the EuroLotto, you'd spend hundred of years trying to spend it through these cards.

                   

                  Cheers

                  |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

                  I only trust myself - and that's a questionable choice

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                    Sparta, NJ
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                    Posted: August 17, 2005, 11:19 am - IP Logged

                    I have to agree with Todd, a swiss bank account would be mighty enticing.

                    I worked across the street from the Bank Of America for a long time. I never saw any Royles Royce parked out front, indicating some rich guy was using the ATM. I am sure some legal/financial adviser would know exactly where the best place, with the best profit, would be. I would think a Swiss Bank Account would be good for spending cash (will 7-11 take a check from a Swiss Bank?).

                     

                    Cheers

                    |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

                    I only trust myself - and that's a questionable choice

                      BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
                      Magnolia, Delaware
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                      Posted: August 17, 2005, 11:21 am - IP Logged

                      Say Rip, you are on the right track there buddy! But you have to be an off shore corp before claiming the winning ticket in the corps name to be exempt from IRS or state taxes as an off shore corp. But one more catch here, the IRS will check to see how long the corp has been a corp, so it would be best to get an seasoned corp (a shelf corp as they are called) of at least of 3 yrs old and do an name change to the off shore shelf corp. or not !

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                        New Mexico
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                        Posted: August 17, 2005, 11:38 am - IP Logged

                        Interesting.

                        Might be a person in the market for an off shore (shelf) corp could find a seasoned one for sale at a righteous price, however.  Bound to be lots of them lying around unused while the owners sit out their sentences in Leavenworth or somewhere.

                        Jack

                        Absorb the good, ignore the bad, weigh the ugly.

                        It's about number behavior.

                        Egos don't count.

                         

                        Dedicated to the memory of Big Loooser

                         

                          BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
                          Magnolia, Delaware
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                          Posted: August 17, 2005, 12:28 pm - IP Logged

                          Rip not at all. They are sold everyday of the week by Incorporation Service companies throughout the US and overseas, they are legally established entities at a reasonable prices. Now lets say your wanting a US shelf corp of 2 yrs. (est. 2003) it would cost around $2500.00 the extra cost is in the name changing and that runs anywhere from 300.00 - 500.00 depending on the incorportion service who does it and what state it's done in! Nevada is the best place to do this with a US based shelf corp and not in just any county either. Douglas county (Lake Tahoe) is the best place in Nevada to do this! Nevada is the only state in the country that does not exchange information with the IRS! No financial or ownership information is shared. That means No Reciprocity with the IRS!

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                            New Mexico
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                            Posted: August 17, 2005, 12:36 pm - IP Logged

                            Good info..... I hope all the future Euro Millions jackpot winners who are US citizens (you know who you are) are taking careful notes of this thread.

                            Surprising how a good thread can just spring up out of nowhere and come to full bloom in an instant.  Or a day.

                            Thanks Barista.

                            Jack

                            Absorb the good, ignore the bad, weigh the ugly.

                            It's about number behavior.

                            Egos don't count.

                             

                            Dedicated to the memory of Big Loooser

                             

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                              Sparta, NJ
                              United States
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                              July 9, 2005
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                              Posted: August 17, 2005, 12:42 pm - IP Logged

                              Rip not at all. They are sold everyday of the week by Incorporation Service companies throughout the US and overseas, they are legally established entities at a reasonable prices. Now lets say your wanting a US shelf corp of 2 yrs. (est. 2003) it would cost around $2500.00 the extra cost is in the name changing and that runs anywhere from 300.00 - 500.00 depending on the incorportion service who does it and what state it's done in! Nevada is the best place to do this with a US based shelf corp and not in just any county either. Douglas county (Lake Tahoe) is the best place in Nevada to do this! Nevada is the only state in the country that does not exchange information with the IRS! No financial or ownership information is shared. That means No Reciprocity with the IRS!

                              Good answer. Will put that one in the "I won the lottery" folder for reference. I keep a folder, so that when my day comes, I can review all I have heard, and refresh the knowledge base. No way can I  become a multi-millionaire and remember all this stuff.

                               

                              Cheers

                              |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

                              I only trust myself - and that's a questionable choice