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Claiming a prize over $600

Topic closed. 7 replies. Last post 1 year ago by Bradly_60.

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Bradly_60's avatar - disney37
Atlantic Mine, Michigan
United States
Member #416
June 23, 2002
1614 Posts
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Posted: September 28, 2013, 4:19 pm - IP Logged

I won $1,000 on a scratch game today.  If I split the prize with someone so that we each get $500 do we have to claim it for tax purposes?  Since we essentially each get a prize that is less than $600, I am wondering.  Anyone know?  Thanks!

    duckman's avatar - ducklogodrake64x64
    Jacksonville Florida
    United States
    Member #23018
    October 6, 2005
    753 Posts
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    Posted: September 28, 2013, 5:43 pm - IP Logged

    I won $1,000 on a scratch game today.  If I split the prize with someone so that we each get $500 do we have to claim it for tax purposes?  Since we essentially each get a prize that is less than $600, I am wondering.  Anyone know?  Thanks!

    Your state lottery will report the $1000 win to the IRS with the appropriate form and the person claiming the $1000 will have to report it. You may be able to deduct losses from playing the lottery this year up to the amount of winnings. As the disclaimer goes, consult your accountant to determine what is best for your situation.

      Avatar
      Marquette, MI
      United States
      Member #20541
      August 20, 2005
      495 Posts
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      Posted: September 28, 2013, 7:10 pm - IP Logged

      I won $1,000 on a scratch game today.  If I split the prize with someone so that we each get $500 do we have to claim it for tax purposes?  Since we essentially each get a prize that is less than $600, I am wondering.  Anyone know?  Thanks!

      Congratulations.  In over 30 years of playing I have never had anything that big.
        You need to take all tickets over $600 and up to $50,000  to a claim center.  Go with the other person and ask the claim center how to claim it for two people.  I am sure, though, that  both of you will each need your ID and SS card and your win of $500 each will both be reported. You can't avoid it just because it is less than $600 per person.  The ticket is over $600 so it has to get reported.

      I have no idea how long the $600 rule has been in effect but I know it has been that way since the early 80s.

      It should be increased to anything over $1500.  After all the FDIC insurance keeps getting increased so the $600 claim limit is way overdue for an inflation adjustment.

        RJOh's avatar - chipmunk
        mid-Ohio
        United States
        Member #9
        March 24, 2001
        18030 Posts
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        Posted: September 28, 2013, 7:30 pm - IP Logged

        Congratulations.  In over 30 years of playing I have never had anything that big.
          You need to take all tickets over $600 and up to $50,000  to a claim center.  Go with the other person and ask the claim center how to claim it for two people.  I am sure, though, that  both of you will each need your ID and SS card and your win of $500 each will both be reported. You can't avoid it just because it is less than $600 per person.  The ticket is over $600 so it has to get reported.

        I have no idea how long the $600 rule has been in effect but I know it has been that way since the early 80s.

        It should be increased to anything over $1500.  After all the FDIC insurance keeps getting increased so the $600 claim limit is way overdue for an inflation adjustment.

        Legally you are suppose to report all your lottery winnings on your taxes even if they are smaller than the amounts states send out a W-G for.  No amount of lottery winnings is tax free, it's just that small amounts aren't worth the states creating paper work or going after if not reported.

        * you don't need more tickets, just the right ticket * 
        * your best chance at winning a lottery jackpot is to buy a ticket * 
             Wink 

          Avatar
          Marquette, MI
          United States
          Member #20541
          August 20, 2005
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          Posted: September 29, 2013, 7:49 pm - IP Logged

          Legally you are suppose to report all your lottery winnings on your taxes even if they are smaller than the amounts states send out a W-G for.  No amount of lottery winnings is tax free, it's just that small amounts aren't worth the states creating paper work or going after if not reported.

          Most people are way, way behind...including me. 

          I take any winnings and use them to buy more tickets.   I wouldn't do that if I hit really big though.

            dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
            Oklahoma
            United States
            Member #82391
            November 12, 2009
            5484 Posts
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            Posted: September 30, 2013, 5:33 am - IP Logged

            Congratulation BradlyHurray! Like others said it has to be reported. Let us know how it went at the claim center.Thumbs Up

            I Love Pink & Green 1908

              Avatar
              Tampa, Fl
              United States
              Member #136507
              December 12, 2012
              47 Posts
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              Posted: October 6, 2013, 2:04 am - IP Logged

              I won a  $1000 on a $10 scratcher a few years ago and I had to go to a claim center here in Florida to claim it. 

              Two things. 

              1.  They make you fill out paperwork and then they fax a bunch of stuff over to whatever city the the state lottery is based.  This took over an hour.

              2.  They friggin SELL tickets and scratchers at the office.  So while you are bored waiting for your prize you end up being baited into playing more.

                Bradly_60's avatar - disney37
                Atlantic Mine, Michigan
                United States
                Member #416
                June 23, 2002
                1614 Posts
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                Posted: October 9, 2013, 8:48 pm - IP Logged

                It was actually pretty quick for me.  I walked in...no line.  Filled out one sheet and she processed the ticket while I was doing that.  Verified my ID, cut me a check and I was out the door.  I don't think it took me more than 15 minutes. 

                But there were tickets for sale at the counter at this place as well...lol.

                Now just want to go back to claim an even bigger prize!

                Brad