Taxable Income - which year?

Reply #10

CASH Only — Tue, 07 Dec 2004 21:55:00 GMT

Paying taxes on lottery winnings is not great.

Reply #9

whodeani — Tue, 07 Dec 2004 17:55:50 GMT

I won $1100 on December 27th of last year (2003). I didn't claim it until January 2nd this year. I didn't receive W-2G form for that win this year. I will get it in January to pay 2004 taxes on it. You pay taxes on it the year you actually claim it, not when you win it. So if you were to win a taxable lottery win in the next couple of weeks, you could wait until after January 1st to claim it and not pay taxes on that win until April of 2006! If your win was fairly large, you could estimate the a... [ More ]

Reply #8

dclive — Tue, 07 Dec 2004 15:18:00 GMT

You pay taxes for the year in which you cash the ticket. So if you cash ticket in Jan. you would not be liable for taxes until the following year.

Reply #7

Jake649 — Tue, 07 Dec 2004 15:15:10 GMT

I am claiming a small amount. It only takes one hour to receive the money from the time I present the ticket.Can anyone point me to the rule on the Internal Revenue Service web site. (www.irs.gov). I could not find it.Thanks,Jake

Reply #6

Grammy3 — Tue, 07 Dec 2004 14:10:57 GMT

When you redeem it you wait 6 to 8 weeks so it would fall 2005.Save your lossing tickets. you can take off up to your win.

Reply #5

acronym007 — Tue, 07 Dec 2004 13:43:20 GMT

I would have to agree with Todd, it has to be the year you redeemed the ticket, you cannot pay taxes on money you have to receive. Tax years are based on past income, earnings, etc, not future or potential wealth.

Reply #4

urbossmanpimpin — Tue, 07 Dec 2004 06:25:04 GMT

i agree with Todd also.

Reply #3

four4me — Tue, 07 Dec 2004 06:11:53 GMT

I agree with Todd on this one. If i win this week on the 4 dig straight and win 10 grand or more i'll cash on ticket before the end of the year and one after the first of the year to break up the tax into two years.

Reply #2

Todd — Tue, 07 Dec 2004 05:28:28 GMT

The year in which you redeemed the ticket, not the year you played.

Reply #1

Stars — Tue, 07 Dec 2004 03:50:55 GMT

Quote: Originally posted by Jake649 on December 6, 2004 Can someone point out where I can find an answer to the following question on the US IRS web site. I checked and could not find it.If a person wins a taxable amount of money in a lottery in December but does not redeem the ticket until January, for which tax year is the money considered as income?The year in which the draw is held or the year in which the ticket was redeemed?Thanks,JakeI'm no accountant or tax attorney, but I always thought... [ More ]

Taxable Income - which year?

Jake649 — Tue, 07 Dec 2004 02:44:24 GMT

Can someone point out where I can find an answer to the following question on the US IRS web site. I checked and could not find it.If a person wins a taxable amount of money in a lottery in December but does not redeem the ticket until January, for which tax year is the money considered as income?The year in which the draw is held or the year in which the ticket was redeemed?Thanks,Jake