Small Winnings Tax QuestionPrevious TopicNext Topic

The max you can cash here in Texas at a Lottery retailer is $599.

So hypothetically what if I have 40 tickets of pick3 worth $500 each, to total $20,000.

Do I have to claim this on my taxes?

Thanks.

I'm not a tax expert but speaking from experience. If I were you, I would contact the Lottery Regional office, if you have one and pose this question to them. I knew a local retailer and he cashed 50 for me and treated them as individual tickets. I may be wrong ,but I suspect the lottery office may not do this.

Right.

If I were to cash them all at various retail stores (gas Station, Grocery Store, etc.) not an actual Lottery office.

I cash mine in on different days .

Right.

But, overall would I be legally required to report I won $20,000 from 40 different tickets at $500 each?

You don't have to report anything, there's no paperwork involved, if you cash them individually.

not a tax expert, but, i agree with the other posters. as long as you cash individually there are no "tracking" methods. i would suggest contacting your tax preparer and getting their opinion.

Legally: You're required to Report All Income.

Cash your tickets all at once..If you have a single ticket for 599.00 and it cost you 1.00 and you have a lot of them you can cash them all at once..I once hit the 122 three times and it paid 400.00 each..I cashed them at Krogers all at once and they gave me 1,200.00..If you need to pay tax the machine will say you need to pay taxes..The law says 599.00 for a 1.00 ticket..If your not sure call the lottery outlet in your state....

You want to hear that you don't have to pay the taxes that you owe, well, as far as I know, all lottery winnings are tax-able, as Raven said.

This does not mean that everybody pays the money that they owe.

Chances are good that many or even most who win smaller lottery prizes don't report them as taxable income, that does not mean that it is right.

Is it right to pay taxas on lottery prizes? "I would say, NO", legal, but not right, yet 2 wrongs don't make 1 right.

For legal advice, ask somebody who is qualified to give it.

Here on Tx, we were told that we could get a state lottery in lieu of a state tax and we did, therefore the lottery is a tax all of itself, Is it right to tax the tax? I say, No, but the law is the law.

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Religion-wise, the Bible says to pay taxes if you owe them, so the thing is, Do you owe them? Legally you do or would if you won (I guess), Ask somebody who is qualified to answer the question.

are you  lucky enough to win $20,000  from pick 3?    win 40  straight  pick3.    win it forty times,  and then you would have gained lots of money,  and paying no tax on any single claim. 

Btw, are you allowed to use losing tickets to deduct against winnings?  If you come up with $20,000 in losing lottery tickets, maybe you can claim a  deduction  and say  NET WINNING:  0 dollar

If you decide to cash in more than 1 ticket at a time then yes it will be reported to the IRS and you will receive a form to include when you file your taxes. If you don't want it reported to the IRS then You can go to various grocery stores and cash in the tickets one at a time and it is tax free. Anything over $599 is reported to the IRS through the Lottery Commission and you receive the form to file with your taxes. No taxes are taken out of the check you receive that day. So it will be up to you to make sure you have the money to pay the taxes you will owe. As long as you are not delinquent in any state loans-child support-or any money owed to the state then you get all of your money. But if you owe then they will be paid first. So when you cash in any large wins make sure your business is handled up on or be prepared to walk away with the change after the state pays your bill for you, or be prepared to walk away with nothing.

good info. I'm 22, still a student and my parents actually did the details of my taxes in the past years. Sad to say,  I haven't much (you can say near 0)  experience filing my own  income tax. 

It's nice to hear no tax is taken out of the check you receive that day, but  what form would the lottery give you? Is it supposed to be filled out and sent out  April 15?   If you somehow omiss it and it didn't end up filed,  would be in  deep doo-doo?

PERDUE...Sorry but you are so wrong..If a dollar ticket is less then 600.00 you can cash them all at one time..I tried it and did it..Like I said in my other post I cashed 3 tickets at 400.00 each and they gave me 1,200.00 and no taxes..It's the law..When I play the ponies I buy trifectas at 1.00 instead of 2.00 so if the tri was to pay over 600.00 I don't have to pay taxes..Look it up..