Can I get some help with online lottery tax infoPrevious TopicNext Topic

Stack47..THANK YOU..But I'll bet someone will come back and tell you your wrong..If the machine says you have to pay taxes you pay taxes as simple as that..I hit a 719.00 tri at the off track betting place I go to and when they cashed my ticket it said I had to pay tax on it and I did..They would not cash the ticket unless I made out the SS form..I think some of these people on this site try to be smart and instead they show they are not..Thank you for explaining it in a simple manner and hope they can understand what you said..I did..

if you win under $600.00 you don't pay taxes and you don't sign your ticket. taxfree no record which is why i play pick 4 boxed and multiple plays keeps it all taxfree,the only time i play str8 plays is quads,when they come in key positions in my method then i hit it hard and pay taxes on those winnings..

The confusion here seems to be in aggregated value.

I'm assuming some people have never cashed a $400 ticket and/or a ticket over $599 or they would know the difference because it's really simple. You handed the clerk three $400 winning $1 tickets, the clerk scans each ticket and the screen says "payout $400" with no questions asked. If the value of the ticket is over $599, the clerk would be instructed to fill out the appropriate form.

Iam awake. I don't know what you are addressing or what you think I have said so I will say again: IF YOU HAVE A WINNING TICKET OVER $599 AT THE TRACK I GO TO THE CLERK OR CASHIER WILL ASK FOR YOUR  ID AND YOUR SS CARD.  THEY WILL FILL OUT THE FORM AND YOU WILL SIGN THE FORM BEFORE THEY GIVE YOU ANY MONEY. (I have no idea what will happen if you don't have ID or SS card)

The only time you can utilize any of your winnings before you sign for it is if you tell the clerk that you wish to place a bet in another race. At that time you give your bet and get your ticket for the other race. The clerk  will deduct the cost of the bet from your net winnings. Now he/she will finish filling out the form for your win over $599. You sign the form, and get your winnings minus the amount for the other bet you made. You will get 3 copies of the 1099 you just signed.

That is what happens at the track I go to. I go a lot and my wife think I go too much.

I do hope you understand; I tried to explain as simply  as I could. If this is not clear I don't know how to help, sorry.

GOOD LUCK

It DOES NOT matter if there is paperwork or not.  I fully understand what you are saying.  I fully understand you would pay taxes if you had to fill out a tax form to get your winnings.

What you fail to understand is you are legally bound to fill out your income tax form and show that $400 that you won.  If you have $400 in losing tickets, you break even - you don't pay tax.  But you have to report it.  That burden is placed on you when you receive cash.

You probably don't think you are legally obligated to report being paid "under the table" in cash for work you do.  Wrong.   The burden is on you to legally report it on your tax form.

"I can't get thru..Bang Bang Bang<<<-----Banging my head agaist the wall.."

You can't get thru because you are wrong.  How about if you rob a bank?  How about if you only get $599 from the bank? Income and report it.  How about you throw a tupperware party and you make $200?  Income and report it.  How about you find $400?  Income and report it.

In real life most people wouldn't report money from those situations...but then they cannot post that they have a tax preparer and brag... "cause in all our years we have never cheated.."    You have cheated by not reporting the three $400 tickets and probably more based on your way of thinking, as you posted here.

Here, don't believe me?  Read.  Two pages, read both.

Bribes, thefts and other taxable income - MSN Money:
http://articles.moneycentral.msn.com/Taxes/Advice/BribesTheftsAndOtherTaxableIncome.aspx?page=1

IRS Form 1040 Line 21 Other Income

One of the things to be reported on this line is:

"Gambling winnings, including lotteries, raffles,
a lump-sum payment from the sale of a right to receive
future lottery payments, etc."

There is no mention of a dollar amount.  So, legally,
you are required to report all of your gambling winnings.

To the senile posters on this board if you ever buy a 1.00 cash 3 and hit 400.00 make sure you ask to  make out a SS form so you can pay taxes on..To the ones who replyed to me you did not say what you said in your last post..You said I had to pay taxes on everything I win regardless of what it paid..Goodbye and goodluck!!..I'm out!..Do you guys live in a rest home?

Here in Illinois you dont have to pay taxes on any lottery prize under 1200 dollars

Illinois seceded from the United States?  Must have missed it on the news.

Of course you have to report ANY LOTTERY WINNINGS to the IRS!  What do you think the article that I linked was saying?   You can probably get away with not paying but it isn't legal!

Why would that be on the 1040 rather than a Schedule C?

What if people gamble for a living as a business?

Some explanations of questions that came up in this thread.

Want to File Your Taxes as a Professional Gambler? - CardPlayer.com:
http://www.cardplayer.com/cardplayer-magazines/59-16-7/articles/13166-want-to-file-your-taxes-as-a-professional-gambler

Am I a Professional Gambler?:
http://traderstatus.com/professionalgamblerstatus.professionalgambler.htm

Professional Gambler Status:
http://www.professionalgamblerstatus.com/

What Is a Gambling Session? Federal Income Tax aspects.:
http://www.gambling-law-us.com/Articles-Notes/Gambling-Session.htm

I'm pretty sure that most people undertand exactly what you're saying, but in case anybody is unclear, I'll spell it out.  You undertstand the legal requirements, but you're a thief who cheats on his taxes because the absence of a paper trail makes you think you can get away with it. Is that about right?

I don't think it's fair that you have report income from bank robberies.

The IRS is out of control.

I'm calling my Congressman.