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Pa. man pleads guilty in bizarre lottery tax case

Topic closed. 73 replies. Last post 4 years ago by mjwinsmith.

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rdgrnr's avatar - walt
Way back up in them dadgum hills, son!
United States
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April 28, 2009
14903 Posts
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Posted: September 28, 2012, 6:05 pm - IP Logged

He should have just paid and been done with it.  He could have invested a portion of his winnings and still be making money.  Nice hit.  But for the life of me..50 cent tickets?  $104.00 on 1 number.  I know folks who put up to 20 bucks on 1 number..

"But for the life of me..50 cent tickets? $104.00 on 1 number."

Folks round here would say "he knowed somethin'."

But then he got greedy.

    Wooddrive's avatar - Lottery-046.jpg
    Delco PA
    United States
    Member #80104
    September 16, 2009
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    Posted: September 28, 2012, 6:16 pm - IP Logged

    In Pa everyone plays 50 cent tickets on big4. That way the retailer can pay immediately. anything over and you have wait for the check in the mail. Good luck, thanks for the conversation.


      United States
      Member #116268
      September 7, 2011
      20244 Posts
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      Posted: September 28, 2012, 6:16 pm - IP Logged

      Nothing really bothers me. I'm too laid back. i just wish I had the money to invest so I can pay the low capital gains tax and let the money work for me.

      Are you conceding that your tax rate on regular income over $388,350. is 35%??

        JADELottery's avatar - MeAtWork 03.PNG
        The Quantum Master
        West Concord, MN
        United States
        Member #21
        December 7, 2001
        3675 Posts
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        Posted: September 28, 2012, 6:43 pm - IP Logged

        Want my Vote?

        Make Lottery Winnings Tax Free.

        Presented 'AS IS' and for Entertainment Purposes Only.
        Any gain or loss is your responsibility.
        Use at your own risk.

        Order is a Subset of Chaos
        Knowledge is Beyond Belief
        Wisdom is Not Censored
        Douglas Paul Smallish
        Jehocifer


          United States
          Member #111442
          May 25, 2011
          6323 Posts
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          Posted: September 28, 2012, 6:44 pm - IP Logged

          Sorry I missed all the fun here.  LOL

          Sounds like when Friend's "friends" started recruiting other warm bodies to do his dirty work, is when everything became compromised.

          Nothin' like a juicy topic of tax evasion, to bring out the warm humanity out of people.  Boxing

            Todd's avatar - Cylon 2.gif
            Chief Bottle Washer
            New Jersey
            United States
            Member #1
            May 31, 2000
            23266 Posts
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            Posted: September 28, 2012, 6:51 pm - IP Logged

            Are you conceding that your tax rate on regular income over $388,350. is 35%??

            It would be rare for someone to pay 35%.  They would have to have no deductions at all.

            For example, Mitt Romney gave more than $4 million of his investment income last year to charity -- a huge percentage of his income.  You do not typically pay tax on money that you gave away to charity, so his overall tax percentage would be less than it would be if he didn't give away anything.

            So, in other words, if you won an $8 million jackpot, and you gave away half of it to charity ($4 million), then you would be taxed on the $4 million you kept.  (Wouldn't it be strange to pay taxes on all $8 million, even though you gave away $4 million to charity?)

            So, if you calculate a straight 35% on the $4 million you have left (which as you mentioned is not a correct calculation, because you only pay the 35% on the amount over $388,000, or whatever it is), then you would end up paying $1.4 million in taxes.

            Now, if the average non-tax-paying American looked at that $1.4 million in taxes you paid and compared it to the $8 million jackpot you won, they would say something like, "Hey, rich guy, you only paid 17.5% in taxes!  That's less than your secretary pays!"  (Or insert an ignorant statement of your own choosing there.)

            Of course, that non-tax-paying American would not be taking into account that you gave away half of your jackpot.  They would only be interested in foolishly saying that you're "a rich guy playing games to pay nothing in taxes."

             

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              United States
              Member #111442
              May 25, 2011
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              Posted: September 28, 2012, 7:01 pm - IP Logged

              Want my Vote?

              Make Lottery Winnings Tax Free.

              Why pay any taxes. What?

              Just kick in a dozen eggs from our chickens, one gallon of milk from our cows, and a little moonshine to uncle Sam once a month.

              That's really all it takes to keep this country running anyways.  Patriot

                luckyshoes's avatar - butterfly neg.jpg
                Pennsylvania
                United States
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                September 2, 2009
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                Posted: September 28, 2012, 7:06 pm - IP Logged

                I live 20 miles from there- lol   I bet I know the place where  he played- maybe even those he recruited to cash in his tickets. And regarding Mr. Cupp,  he was my lawyer once and needless to say.... NEVER AGAIN

                Surely the most important news of any day ...

                                                                is that the sun has risen one more time. Sun Smiley


                  United States
                  Member #116268
                  September 7, 2011
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                  Posted: September 28, 2012, 7:06 pm - IP Logged

                  I think I'm seeing the light...... It sounds like "a rich guy playing games to pay nothing in taxes" 

                  PAYS MORE IN TAXES

                  than "the average non-tax-paying American" and the rich guys secretary put together.

                    Avatar
                    Kentucky
                    United States
                    Member #32652
                    February 14, 2006
                    7310 Posts
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                    Posted: September 28, 2012, 7:34 pm - IP Logged

                    In Pa everyone plays 50 cent tickets on big4. That way the retailer can pay immediately. anything over and you have wait for the check in the mail. Good luck, thanks for the conversation.

                    That explains why he got 50 cent tickets because taxes must still be paid on $2500 in winnings; that and the fact he knew lots of "10 percenters". It made it easier for him to make sure none of the "10 percenters" kept all the money and had it been $1 tickets, it would be more difficult to find someone to cash it.

                    In the two states where I've had $1 straight winners, it was very easy to collect the winnings. Depending on how far they live from lottery authorized bank, Ohio players can get paid up to $5000 in a couple of hours and in KY when I had three straight tickets, the cashing agent wrote me a check for $15,000 after filling out the W2-Gs. Had I won over $25,000, I would have taken the tickets to Lottery Headquarters and they would have withheld 25% in taxes.

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                      Seattle, Washington
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                      January 3, 2012
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                      Posted: September 28, 2012, 7:36 pm - IP Logged

                      What. An. Idiot.  You should have just paid your taxes upfront, dumbass, and enjoyed your windfall with no stress or worry; now, you're facing jail & possibly losing a big portion of it to penalties & interest.  Moron!

                        JADELottery's avatar - MeAtWork 03.PNG
                        The Quantum Master
                        West Concord, MN
                        United States
                        Member #21
                        December 7, 2001
                        3675 Posts
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                        Posted: September 28, 2012, 8:10 pm - IP Logged

                        Why pay any taxes. What?

                        Just kick in a dozen eggs from our chickens, one gallon of milk from our cows, and a little moonshine to uncle Sam once a month.

                        That's really all it takes to keep this country running anyways.  Patriot

                        Make the Government a donation based entity.

                        Presented 'AS IS' and for Entertainment Purposes Only.
                        Any gain or loss is your responsibility.
                        Use at your own risk.

                        Order is a Subset of Chaos
                        Knowledge is Beyond Belief
                        Wisdom is Not Censored
                        Douglas Paul Smallish
                        Jehocifer


                          United States
                          Member #111442
                          May 25, 2011
                          6323 Posts
                          Offline
                          Posted: September 28, 2012, 8:13 pm - IP Logged

                          Make the Government a donation based entity.

                          There you go!

                          I've got my eggs ready, I'll be the first to donate.  Hyper

                            Cletu$2's avatar - Lottery-050.jpg
                            S.E.Iowa
                            United States
                            Member #120504
                            December 21, 2011
                            534 Posts
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                            Posted: September 28, 2012, 8:38 pm - IP Logged

                            your rate is 35%, mine is 25% buddy.

                            Your rate is 35%,too.The lottery will withhold 25% right off the top,but on April 15th you will still owe the feds another 10 %.Thats a fact!

                            When I was a boy I was told that anybody could become President; I'm beginning to believe it. ~Clarence Darrow

                            There ought to be one day - just one - when there is open season on senators. ~Will Rogers

                              whiteballz's avatar - Lottery-015.jpg
                              Nutley, New Jersey
                              United States
                              Member #131058
                              August 1, 2012
                              875 Posts
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                              Posted: September 28, 2012, 10:02 pm - IP Logged

                              It appears many folks are confused at what the true Federal tax rate is on Lottery winnings. The 25% Federal tax that gets witheld on major Jackpots is just the initial down payment. The top tier Federal tax rate is currently 35% and is set to go up in 2013. The winner is still responsible for the other 10% but he/she can mitigate the additional tax owed by working with an experienced CPA and tax attorney.

                              This is the number one reason why so many Jackpot winners get in trouble because they assume that ALL Federal taxes have already been paid prior to collecting their winnings.

                              Jill I don't know what you mean when you wrote, "mitigate the additional tax owed." Currently, the marginal tax rate for income over $388,350 is 35% and nothing in the world is going to change that.

                              Tax deductions, like giving money to charity, would lower your effective tax rate but the money you give away will not lower your tax liability dollar for dollar.

                              In other words, if your marginal tax rate is 35%, every dollar you gave to charity would only lower your tax liability by 35 cents. So you end up losing 65 cents for every dollar you gave away.

                              .