Online lottery sales not approved by Massachusetts lawmakers

Comment #33

sam9009 — Mon, 22 Aug 2016 00:16:21 GMT

Any winnings in NY ($600 or less) you collect from a bodega don't require IRS paperwork.

IRS will know about it only if you tell them.

I guess it's an individual choice.

Comment #32

dr65 — Wed, 03 Aug 2016 21:56:37 GMT

Comment #31

faber98 — Wed, 03 Aug 2016 20:15:25 GMT

you couldn't be more wrong if you tried. sure, they're going to check cameras in every store in the state to see who is cashing all the under 500.00 tickets. the people that work for the state and the lottery have trouble ordering lunch if they show up for work at all. there would be no lawyers fees, court fees etc. even in the remote chance you did get caught. it isn't even a remote chance, it's no chance. they would just send you a bill which you could negotiate down. the irs doesn't jail peop... [ More ]

Comment #30

faber98 — Wed, 03 Aug 2016 20:07:14 GMT

yes, that no good governor did. so under 500.00 is safe.

Comment #29

Stack47 — Wed, 03 Aug 2016 16:39:45 GMT

If you win $500 that many times, MUSL will investigate the fraud going on given it's near impossible for anyone to win that many times, and they'll look at the surveillance cameras and find out who won that much.

Apologies for laughing, but some state lotteries pay out $500,000 daily and I seriously doubt they have the time or resources to investigate 365,000 winning tickets year. Now if a state had an average daily sales of $600,000 and paid out $500,000 daily, there might be some type... [ More ]

Comment #28

LiveInGreenBay — Wed, 03 Aug 2016 16:14:21 GMT

Answer me this... If someone did win $500.00 a bunch of times over the period of a year or so, how would they know it was one person? The lottery won't investigate squat.

Comment #27

Kingofearth — Wed, 03 Aug 2016 16:08:33 GMT

A couple hundred is too small for even the IRS to care BUT if you manage to win thousands and thousand from the small prizes and/or you rely on your new skill as a major part of your income, you better report it or the IRS will come knocking with handcuffs. If you win $500 that many times, MUSL will investigate the fraud going on given it's near impossible for anyone to win that many times, and they'll look at the surveillance cameras and find out who won that much. Between court fees from unpai... [ More ]

Comment #26

Stack47 — Wed, 03 Aug 2016 15:47:22 GMT

Good question!

All gambling winnings (I suppose it mean free tickets too) must be reported as income on 1040s, but any gambling losses up to the amount of the winnings can be deducted using schedule A itemize deductions. How any individual decides how much they won (winning minus losses?) whether or not to report it, is their decision.

there is no way they can attached that to you

IMO, that's between you, your accountant, and the IRS.

Comment #25

Stack47 — Wed, 03 Aug 2016 15:23:27 GMT

As somebody pointed out, the IRS defines it as gambling winnings so if the prize is $600 like the KY pick-3 pays, the winnings are $599. The KY Lottery agents do not issue a W-2G on $1 pick-3 winning straight ticket. Under your ten $500 winning tickets scenario, no W-2G would not be issued so no winnings are reported to the IRS.

The KY lottery offers MM, PB, and its state game Cash Ball Online along with several instant play games some with prizes up to $50,000. Any wager winning over $600 is... [ More ]

Comment #24

Bleudog101 — Wed, 03 Aug 2016 12:34:58 GMT

Yes,

But didn't Governor Patrick institute a state tax in Mass. for winnings over $500

Comment #23

faber98 — Wed, 03 Aug 2016 12:22:40 GMT

why would anyone report lottery winnings under 600.00 to the government both state and federal. you don't have to sign the ticket to cash it (you shouldn't) so how would they know who cashed it. even if you were foolish enough to sign it they don't have anyone checking all these tickets (under 600.00) to catch you. even if you won 500.00 75 times in a year there is no way they can attached that to you. if you buy a ticket online that's a different animal. don't do it.

Comment #22

Bleudog101 — Wed, 03 Aug 2016 11:14:13 GMT

Too bad for the residents of Massachusetts. Glad KY is one of the few states that allows on-line ticket purchases.

On a side note, all set for Mass. lotteries. My Season Tickets for Powerball, Megamillions and MegaBucks Doubler have all arrived and good through 28 AUG 2017.

Comment #21

TheMeatman2005 — Wed, 03 Aug 2016 03:21:58 GMT

https://www.irs.gov/taxtopics/tc419.html

Topic 419 - Gambling Income and Losses

The following rules apply to casual gamblers. Gambling winnings are fully taxable and you must report them on your tax return. Gambling income includes but is not limited to winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and the fair market value of prizes, such as cars and trips. For additional information, refer to Publication 525, Taxable and Nontaxable Income, or r... [ More ]

Comment #20

Groppo — Tue, 02 Aug 2016 23:53:50 GMT

.

Many good points have been made here, this evening.

If you are just joining this article, and it's comments, please be sure to read all the comments.

I have learned a lot from the comments here AND in previous articles and their comments.

Lessons learned here have already forged certain decisions I'll make from now, on:

I shall NOT participate in online gaming of any kind, for fear of the smallest prizes accumulating

within the year and resulting in the IRS obliging me.

Mr... [ More ]

Comment #19

LiveInGreenBay — Tue, 02 Aug 2016 23:26:40 GMT

All you have to do is sign the back of the ticket. How they going to know who it is? Hey, my name is John Smith.

Comment #18

grwurston — Tue, 02 Aug 2016 23:23:15 GMT

You mean, prizes under $600.

Comment #17

LiveInGreenBay — Tue, 02 Aug 2016 23:22:34 GMT

I think you mean under 600. That's true. The discussion was online lottery. Say you run a pick 3 ticket ten times and hit the jp. That's 5 grand. If you bought retail, you can turn those tickets into various retail lottery stores and collect 5 grand. But if they were bought online, a record of those wins would be available to the State department of Revenue and the IRS. Guess what...You owe.

Comment #16

Stack47 — Tue, 02 Aug 2016 23:14:53 GMT

Prizes over $600 are not issued a W-2G which basically means there is no written record of the win. But by playing online there is a record of all the transactions. Last year I won over $600 accumulated on a legal horse racing site, but since they never sent me an statement, I had nothing to give to the IRS.

Comment #15

ArizonaDream — Tue, 02 Aug 2016 22:50:37 GMT

Yes. Because the state has already taken their cut.

Comment #14

THRIFTY — Tue, 02 Aug 2016 22:17:01 GMT

PLAYING THE LOTTERY IS A VOLUNTARY TAX. I QUIT PLAYING THE LOTTERY. I AM SAVING MY MONEY.

Comment #13

Kingofearth — Tue, 02 Aug 2016 22:10:06 GMT

An Emergency room doctor saves your life - His income is taxed

A firefighter rescues you from a burning house -his income is taxed

A military veteran is assigned to a base in Afghanistan- her income is taxed

You spend two seconds and $1 to buy a ticket while shopping -Your winnings should be tax free

Comment #12

Kingofearth — Tue, 02 Aug 2016 22:06:13 GMT

They are, it's just that under $5,000 is too small for the IRS to care enough (600-4,999 is only withheld if you have outstanding debts like child support in most states and federally) to impose a witholding on it. You must include it though on your tax returns as gambling income, especially if it is a significant amount.

Comment #11

Kingofearth — Tue, 02 Aug 2016 22:03:07 GMT

There is a record and taxes are still owed. When you hand the ticket to the retailer, it gets verified and recorded. If you manage to win that many hits, the IRS will come looking for its cut and you'll see the bad side of a pair of handcuffs. We can't even use a credit card here in NY to buy a ticket,you really think the NY lottery is gonna digitize anything in the near future

Comment #10

THRIFTY — Tue, 02 Aug 2016 21:58:43 GMT

Lottery winnings are all TAXABLE, when you buy lottery tickets through the Internet, including lottery Subscriptions.

LOTTERY PRIZES ( WINNINGS)SHOULD BE TAX FREE, SINCE WE ARE PLAYING WITH AFTER TAX MONEY.

Comment #9

music* — Tue, 02 Aug 2016 21:53:57 GMT

Thrifty you have the safety issue on the mark. I hope California goes online.

Comment #8

THRIFTY — Tue, 02 Aug 2016 21:26:12 GMT

I WILL NOT BE BUYING LOTTERY TICKETS THROUGH ONLINE SUSCRIPTIONS, OR BUYING LOTTERY TICKETS INSTANTLY ONLINE UNLESS IT IS TAX FREE.

Comment #7

LiveInGreenBay — Tue, 02 Aug 2016 21:21:36 GMT

They aren't but if you add a bunch of small wins together over a year, they equal a big win according to the dreaded IRS.

Comment #6

THRIFTY — Tue, 02 Aug 2016 21:19:42 GMT

I thought that prizes up to $600 were not taxable income

Comment #5

LiveInGreenBay — Tue, 02 Aug 2016 21:15:28 GMT

That's true THRIFTY but consider this...Say over the course of a year you won on 6 or even 10 $500.00 tickets. If you bought them at retailers there would be no record and no tax owed (unless you were stupid and declared it as income). However; if you went online and bought those same low-tier winners, the IRS would automatically have a record of those wins. And at the end of the year you would owe the IRS tax on those earnings.

I see where this crap is eventually going. In the near future,... [ More ]

Comment #4

THRIFTY — Tue, 02 Aug 2016 21:03:46 GMT

LOTTERY PLAYERS CHANCES OF DYING ARE HIGHER BY GOING TO LOTTERY RETAILERS TO PLAY THE LOTTERY.

PLAYING THE LOTTERY ONLINE IS LESS RISKY.

Comment #3

LiveInGreenBay — Tue, 02 Aug 2016 20:58:28 GMT

Yea Meatman...That's a lot of lottery players not winning squat. LOL

Comment #2

TheMeatman2005 — Tue, 02 Aug 2016 20:54:24 GMT

That's a nice profit.

Comment #1

LiveInGreenBay — Tue, 02 Aug 2016 19:49:21 GMT

The MA lottery made 5.2 billion dollars in one year? Wow.

Online lottery sales not approved by Massachusetts lawmakers

Lottery Post — Tue, 02 Aug 2016 19:40:54 GMT

Massachusetts lottery players are going to have to wait a little bit longer if they want to buy lottery tickets online.

In their most recent economic development bill passed Sunday, Massachusetts legislators chose not to authorize the state lottery to begin online gaming.

Lawmakers said that they wanted to address other priorities. Those included $500 million in funding for MassWorks infrastructure, and $45 million for new equipment in career and technical education. A new tax deduction to... [ More ]