Can I get some help with online lottery tax info

Reply #74

tiggs95 — Mon, 26 Oct 2009 17:20:17 GMT

I unerstood the last sentence..I might be dumb but I'm not a tax cheat or a thieft..That's Stack for all your help..

Reply #73

Stack47 — Mon, 26 Oct 2009 17:07:09 GMT

There are IRS codes and guidelines requiring state lotteries to report winnings over $599 but even after each of those tickets are paid off, they still shows a nice profit. It's pretty simple to me; if every state lottery reports significant winners and shows a profit, where are the gambling winnings?

You are being called a tax cheat because some people expect you to prove you won something when there is no record you won anything. They also want us to record the outcome of each gambling sess... [ More ]

Reply #72

Stack47 — Mon, 26 Oct 2009 15:55:46 GMT

Casinos will track our slot and table play by player cards so that type of gambling session is obvious, but scratch-offs and online lottery are different. With lottery games it's almost impossible to define the length of a gambling session because we can buy a ticket in June and still cash it in November without knowing if we won. Most state lotteries allow up to 180 days to cash a ticket and the income isn't determined until we have the ticket validated. We can also buy advanced tickets and the... [ More ]

Reply #71

tiggs95 — Mon, 26 Oct 2009 13:05:36 GMT

Stack 47...Please your making to much sense for any of these posters to understand..Let's keep life simple and easy and fololow the rules the IRS has offered..Like you say When I have to give my SS card and have to make out a tax form then and only then will I and HAVE to pay tax''...I kinda worded it my own way but I think that's what you said..I'm a simple person just trying to get by in the world..oh yeah and to eveyone who called me a thief.,.pffffff

Reply #70

truecritic — Mon, 26 Oct 2009 02:48:26 GMT

There is a precedent.

Stack, you were advocating netting your winnings. You want to go for a 1 yr period and calculate whether you had more money than you had at the beginning of the year or less. If you had less, you did not want to report winnings. For that matter, it sounds like you didn't want to report anything.

U.S. taxpayers, with the exception of some professional gamblers, are not allowed to net their wins and losses (that is, combine them and report only the total), but must ad... [ More ]

Reply #69

Stack47 — Sun, 25 Oct 2009 15:21:52 GMT

You and I understand casual gambling and we buy lottery tickets hoping for a significant win and we might spend $1000 or more a year doing that. Maybe our critics only spend $1 a year on the lottery and to them a significant win is $3 on a scatch-off and must report it on their 1040 as income. To me a significant win is when I show my SS card and sign my name on W2-G and that amount is reported to the IRS and then I report it as income on my 1040.

I did read one of the articles on a gambling

Reply #68

Stack47 — Sun, 25 Oct 2009 14:23:18 GMT

The article clearly says However, the Internal Revenue Code and supporting IRS precedent do not provide any specific guideline on when a gambling activity begins and ends in order to determine whether the particular activity resulted in a win or a loss.

How can I be wrong if the IRS has no precedents or guidelines?

And by the way, I never thought you were a tax expert.

Reply #67

tiggs95 — Thu, 22 Oct 2009 20:11:20 GMT

truecritic..You said you was sorry in your last post but I knew you was sorry..Good luck in your perfect life..I'll try to be more perfect as I grow older but I don't have much time..Wish me luck..

Reply #66

tiggs95 — Thu, 22 Oct 2009 20:08:01 GMT

PS:If you find a winning ticket say worth 50.00 how do you file that?..Do they have a line in the tax form for finders keepers losers weepers?...Can't wait to hear this answer..

Reply #65

truecritic — Thu, 22 Oct 2009 17:07:12 GMT

Anyone that thinks I am a tax expert is mistaken - but I do take time to read rules that apply to me.

I posted three articles. The article I posted about Gambling Sessions was specifically for you, Stack. In the first 2 paragraphs is how you calculate gambling. Hint: It's NOT the way you posted above.

https://www.lotterypost.com/thread/201998/1437525

You can go on doing what you are doing - doesn't bother me in the least, as long as you know it is wrong.

Same goes for Tigger, go on d... [ More ]

Reply #64

tiggs95 — Thu, 22 Oct 2009 14:38:37 GMT

I called the tax lady who is in business doing tax returns and told her she's been doing my tax returns for the past 15 years and that people on the internet have called me a tax cheat and thief cause I cheat on my taxes..She said THE INTERNET ??..Thier is your problam stay off the internet...

Stack47 you are going to lose no matter what you say..I wish you luck but these experst on here are always right..ask them..If you say the sky is blue they will somehow find it to be red and tell y... [ More ]

Reply #63

Stack47 — Thu, 22 Oct 2009 14:31:46 GMT

It just occurred to me I forgot to report that free ticket I won in 1997; do you think they will send us to a federal prison

Reply #62

bomatt — Thu, 22 Oct 2009 14:26:23 GMT

When the government starts earning their money rather than legislating the forcing of paying it...

We work hard to win the money and are entitled to it.

Reply #61

Stack47 — Thu, 22 Oct 2009 14:23:19 GMT

The problem here is you don't understand what casual gambler and gambling winnings means. We are required to report all our income including gambling winnings for the taxable year and the definition of a taxable year is between January 1 and December 31. I can't find where it says to report that free ticket I cashed on August 17, February 2, July 10, or any other day of the year. With over 2 months to go in the taxable year 2009, it's impossible for anyone to now accurately report gambling winni... [ More ]

Reply #60

tiggs95 — Thu, 22 Oct 2009 12:15:49 GMT

KY Floyd..Yup you got me pegged..So I called the IRS and told them I wanted to report that I hit 50.00 on the cash 3 and they told me to stop bothering them with such crap..Now what do you suggest?..Give it back?..If the IRS says you don't have to file a certain amout on your tax I won't..Maybe I'll call tax cheat Tim Geitner and Charley Rangel and ask them what I should do..They would probably tell me listen to the expert's on the lottery post..Yeah expert's...

Reply #59

truecritic — Thu, 22 Oct 2009 09:11:50 GMT

Reply #58

rdgrnr — Thu, 22 Oct 2009 06:37:25 GMT

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.

Reply #57

KY Floyd — Thu, 22 Oct 2009 06:20:31 GMT

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

Reply #56

truecritic — Wed, 21 Oct 2009 23:57:25 GMT

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.... [ More ]

Reply #55

bomatt — Wed, 21 Oct 2009 21:39:05 GMT

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

What if people gamble for a living as a business

Reply #54

truecritic — Wed, 21 Oct 2009 20:33:06 GMT

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

Reply #53

Jordans121 — Wed, 21 Oct 2009 19:41:26 GMT

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

Reply #52

tiggs95 — Wed, 21 Oct 2009 19:37:14 GMT

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

Reply #51

Jack-C — Wed, 21 Oct 2009 18:04:29 GMT

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.

Reply #50

Jack-C — Wed, 21 Oct 2009 17:42:00 GMT

Reply #49

truecritic — Wed, 21 Oct 2009 17:38:29 GMT

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... [ More ]

Reply #48

sunjune6 — Wed, 21 Oct 2009 16:49:22 GMT

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 b... [ More ]

Reply #47

Stack47 — Wed, 21 Oct 2009 16:00:19 GMT

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.

Reply #46

bigdaddy — Wed, 21 Oct 2009 15:34:41 GMT

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..

Reply #45

tiggs95 — Wed, 21 Oct 2009 15:25:54 GMT

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 t... [ More ]

Reply #44

Stack47 — Wed, 21 Oct 2009 15:16:40 GMT

Back in the day when race tracks used tote machines, the tickets were bought and cashed at separate windows. They did fill out a W2-G on a reportable winning ticket with the name and SS number of the person cashing the tickets but there were no record of who cashed the other tickets. Today race tracks use computers similar to lottery terminals and the computer keeps track of transactions. Other than a W2-G there is no record of who bought the tickets or cashed them. The computer would show it pa... [ More ]

Reply #43

tiggs95 — Wed, 21 Oct 2009 15:12:25 GMT

trueritic..Each ticket was 400.00..You do not have to pay any taxes on a 400.00 ticket ----Do you understand this?...I could have cashed each ticket one at a time if that would have made you feel better..I wish Todd would read this and try to explain it to you..I can't get thru..Bang Bang Bang -----Banging my head agaist the wall..

Reply #42

tiggs95 — Wed, 21 Oct 2009 15:07:53 GMT

sunjune6..WAKE UP...If the track reports any ticket they cash for me and I have to pay taxes on that ticket that means I have made out the SS form..I have to be the one at the track to file the form for the IRS they don't know my ss number name or address UNLESS I TELL THEM...Man WAKE UP..How do you think the IRS get's my name..I MAKE OUT THE FORM ..Man oh man..Excuse me while I bang my head against the wall..They MAKE me make out the SS form before I can get my money if it pays 600.00 or more..... [ More ]

Reply #41

Stack47 — Wed, 21 Oct 2009 14:56:03 GMT

We really don't know there will be any gambling winnings until the session is over and the taxable year is that session. The IRS doesn't expect or require the casual gambler to report every wager they make and the results, but they do require the operators to report a winning $1 wager where the payoff is over $599. Not one clerk has every asked for my SS number when I bought tickets nor has one asked for it when I've cashed small winners.

how do you report your regular income?

My employe... [ More ]

Reply #40

truecritic — Wed, 21 Oct 2009 14:39:46 GMT

The IRS tax code tells you to report $1,200 on your Income Tax Form. If and when you win enough that they have you fill out forms, the amount they take (I think 28%? + State Income tax, if your State has one) is NOT necessarily the tax you owe. You could owe more or you could owe less. They only do that to guarantee they get at least that much. What you have to report has no bearing on whether or not they take your SS.

NOWHERE will the lottery say you owe taxes or how much (other than them ke... [ More ]

Reply #39

sunjune6 — Wed, 21 Oct 2009 14:14:27 GMT

The track has reported it and that is why you had best report it WHEN YOU FILE YOUR TAXES or you will get fined for under reporting your income.

I will guess you and your wife have never been to the track and won anything under $600. If you say you never cheated on your taxes; that's great. If you gamble; you cheat, because you are not reporting all of your winnings, or , you have never won anything.

Reply #38

tiggs95 — Wed, 21 Oct 2009 12:29:14 GMT

trucritic...When I cash ANY ticket and they ask for my SS card I do the RIGHT thing and give it to them and make out the SS forms that are needed..If they pay me and don't ask for my SS card I don't beg them to please make me pay taxes but they say you don't have to pay taxes on a ticket under 600.00 DUUUUH..Wake up and smell the roses..You don't know everything like you think you do...I guess..Each ticket was for 400.00...3 times 400.00 is 1200.00..I could have cash them mone at a time but the... [ More ]

Reply #37

Jordans121 — Wed, 21 Oct 2009 09:20:19 GMT

It is illegal to play online so do not worry about paying taxes on it. If you were caught doing illegal wagers they could charge you a hefty fine and clean your bank account if necessary especially if you dont work. Plus, it is a 3rd degree misdemeanor which could land you in jail for about 7 months. Non the less, these things probably won't happen.

Reply #36

truecritic — Wed, 21 Oct 2009 09:13:54 GMT

To the person who said everyone cheats on thier* taxes or thier* lying I guess me and my wife are liars cause in all our years we have never cheated.

Oh! So then, we can just ignore ALL your previous posts in this thread? You reported those lottery tickets that you cashed at Kroger's afterall?

*(thier? maybe you mean their?)

*(thier? maybe you mean they're

Reply #35

tiggs95 — Tue, 20 Oct 2009 12:31:49 GMT

sunjune6..If you win 600.00 or more at the track you don't have to report it the tarck will do that for you when you make out a IRS form or you don't get the money..If you don't wan't to pay any taxes on it tear up the ticket and throw it away or give it to someone else..I remeber a guy hitting a winner that paid like 2 grand and he had someone else cash it and gave him part of the winnings so he diden't have to pay taxes..

To the person who said everyone cheats on thier taxes or thier l... [ More ]

Reply #34

sunjune6 — Tue, 20 Oct 2009 12:06:38 GMT

When it comes to WINNINGS at the race track it affects your tax bracket more than anything. It's reported to IRS if $600 or more, but you might just be stupid enough to stay there and lose it all back. As you leave the track you have lost what you came with and the $600 that you HAD won. IRS doesn't care about your BAD HABIT(WINNING AND LOSING IT BACK). Their records show you won $600 and you had best report it when you file your tax. Off-set all of your loses up to the $600, yes, but you may ha... [ More ]

Reply #33

KY Floyd — Tue, 20 Oct 2009 07:22:55 GMT

Should I report $31 as gambling winnings, deduct $10 for the losingtickets on schedule A and pay tax on $21 when I only won $13?

This goes back to the point I was making in my last post. You seem to be having trouble accounting for the deductible losses. In your previous post you referred to deducting $800 when the actual losses were $2000, and you've done that again here. If you bought 9 tickets at $2 each, you've got $18 in deductions, not $10. Deduct that from the $31 in winnings, and you... [ More ]

Reply #32

Stack47 — Mon, 19 Oct 2009 17:28:42 GMT

Not many people would be playing scratch-offs if they bought $2000 worth of tickets and only one ticket was a winner and if that were true, I would have 1999 losing tickets. The overall odds is usually one out five tickets is a winner and payoffs for scratch-offs is around 60% so it's not unreasonable to expect to get back $1200 for every $2000 we spend.

Maybe I wrongly assumed people understood casual gambling is a series of small wins and losses. Two weeks ago I bought three $2 scratch-off... [ More ]

Reply #31

marcie — Mon, 19 Oct 2009 14:28:12 GMT

Ok, that is the reason, if you play outside of U.S.A you don't pay any taxes. that why they don't want you to put this website up.5D, It makes since now.

Reply #30

sunjune6 — Sun, 18 Oct 2009 15:20:17 GMT

There is a lot of discussion here about taxes and everyone seems to be saying the same thing just saying it differently. Basically, All gamblers cheat on their taxes. Anyone saying they don't is LYING BIG TIME.

Reply #29

KY Floyd — Sat, 17 Oct 2009 23:54:32 GMT

If the value of one of those tickets was over $599, I would be givenW2-G, it would be recorded as taxable income, and I could deduct all orany part of the $800 loss up to the value of the ticket.

You're either doing a bad job of saying what you mean or you're confused about how it works. You seem to be saying that if you won $1200 on one ticket that you would only be able to deduct the $800 net loss, and therefore still have $400 in net income to pay taxes on. What you'd actually have is a l... [ More ]

Reply #28

sunjune6 — Sat, 17 Oct 2009 16:31:17 GMT

All income earned or won is taxable. All income is not reportable(meaning reported to IRS). Only amounts over $599. That is the cut off that IRS has set. Reason being it would be a chaotic situation for them to track smaller amounts. This is how it is and everyone that gamble and say they report all of their income on their tax return is lying big time.

Reply #27

Jack-C — Sat, 17 Oct 2009 14:22:08 GMT

What some of us are trying to say here is what the law is, NOT what you would do!

I have owned a few businesses here in California. As a business owner I had to pay sales tax to the California Franchise Board and I had to have a copy of the California regulations.

One of the regulations is that if someone buys something from out of state (by internet, telephone, catalog, etc.) and does not pay California sales tax, then they are required (by law) to pay the California sales tax.

Of cour... [ More ]

Reply #26

Jack-C — Sat, 17 Oct 2009 14:17:23 GMT

I copied this directly from the IRS web site. If you think it is not correct, then you need to contact the IRS and tell them, not me

Reply #25

Stack47 — Sat, 17 Oct 2009 13:53:54 GMT

If I buy $2000 worth of a stock and sold it for $2500, I'd have a taxable income of $500. If I sold the same stock for $1200, I'd have a $800 loss and no taxable income. The paper worth of stock fluctuates the same as credits on a slot machine and the determine factor of profit or loss is the amount you sell or cash out for.

If I buy $2000 worth of scratch-off tickets, I'm out $2000 before I scratch the first ticket and won't know my winnings or losses until I scratch the last ticket. Cashing... [ More ]

Reply #24

tiggs95 — Sat, 17 Oct 2009 13:52:15 GMT

Some of these post sounds like the IRS,all confusing..If they give you money and don't ask for your SS card take the money and run..simple..They know the IRS law or they would not be in business..ban bang ---my head pounding against the wall..........

Reply #23

KY Floyd — Sat, 17 Oct 2009 05:44:53 GMT

Nobody said you have to report the $3.75. For starters, a credit in a slot machine is no different than a paper profit on a stock that you don't sell. You may have a theoretical profit, but until it's a real profit there is no tax implication. As for actually winning from gambling, it's your net result during each gambling session that counts. What constitutes a session will vary a bit, but at the least it requires that you cash out. As a practical matter, if you spend a week in Vegas and you bu... [ More ]

Reply #22

mybelle — Fri, 16 Oct 2009 22:59:18 GMT

Jack C,

The first sentence in the 3rd paragraph is inaccurate. You can use a 1040A for tax return and not have to itemize deductions. Yes, you do need to use a Schedule A, and you can zero out your winnings by showing your losses (if you can prove this), and this 0 goes on your return. I won more than 20K at casino and have proof that I lost equal to that if not more (by saving my cancelled checks). My tax return is in a box, but if you have any questions, I can retrieve it.

MyBelle - Flor... [ More ]

Reply #21

tiggs95 — Fri, 16 Oct 2009 22:45:07 GMT

I went to Krogers once with 4 1.00 cash 3 tickets worth 400.00 each and they cashed all three at once and gave me 1,200.00 and no IRS came to see me..There is no paper work when you cash a ticket for 1.00 and it pays 599.00 or less..Simple..Read your IRS rules..If you don't trust cashing them all at once then cash them one at a time..Excuse me while I go bang my head against the wall.....

Reply #20

sunjune6 — Fri, 16 Oct 2009 19:57:56 GMT

Look out. Here come IRS

Reply #19

Stack47 — Wed, 14 Oct 2009 14:13:58 GMT

and try to keep it simple. The tax codes only requires the operators of gambling games to report payoffs over $599 on a $1 bet using tax form W2-G even though it's possible to have thousands of payoffs under $599. From their point of view it doesn't matter if one player collected more than they spent.

If a lottery retailer in sells $2000 worth of scratch-offs to one player and pays out $1200 for winning tickets, they showed a $800 profit. Some people want us to believe the player should repor... [ More ]

Reply #18

tiggs95 — Wed, 14 Oct 2009 12:04:16 GMT

Stack your better off thring to talk to a wall..

Reply #17

Stack47 — Wed, 14 Oct 2009 11:59:01 GMT

I put $20 into a Quarter slot machine, get 80 credit, and use three credits every spin. If I lose the first four spins, the credits are now 65. On the fifth spin I hit 3 mixed bars, win 15 credits ($3.75), now have 80 credits, and cash out the $20. According to you, we're suppose to report the winnings ($3.75), but I have the same amount of money I started with.

What exactly did I win that needs to be reported

Reply #16

BobP — Tue, 13 Oct 2009 23:06:16 GMT

I'm not a lawyur so please don't even think of this as legal advice.

You have to use some commong sense when dealing with these kind of things.

You may deduct gambling losses only if you itemize deductions.

Here is where the congress critters set out to cheat the taxpayers knowing full well most americans use the short form because they don't have enough deductions to offset the difference between the basic deduction and the itemized deduction minimum.

So you go into the... [ More ]

Reply #15

Jack-C — Tue, 13 Oct 2009 21:36:48 GMT

Direct from the IRS:

Topic 419 - Gambling Income and Losses

The following rules only apply to casual gamblers. Gambling winnings are fully taxable and must be reported on your tax return. You must file Form 1040 (PDF) and include all of your winnings. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair market value of prizes such as cars and trips. For additional information, refer to P... [ More ]

Reply #14

Jack-C — Tue, 13 Oct 2009 21:13:02 GMT

They will NOT tell you that you don't have to pay taxes on the winnings. But, they will not ask you to fill out paperwork nor will they withhold 20% Federal Tax.

Reply #13

Raven62 — Tue, 13 Oct 2009 14:31:56 GMT

An estimated 30 percent to 40 percent of taxpayers cheat on their returns.

An estimated 60 percent to 70 percent of taxpayers pay higher taxes as a result of other taxpayers cheating on their returns.

A key reason people evade taxes is that it is easy to rationalize.

Typical justifications include the idea that everyone does it, the system is unfair so the perpetrator is righting a wrong and the government just squanders the money anyway.

The biggest loss of tax revenue c... [ More ]

Reply #12

tiggs95 — Tue, 13 Oct 2009 13:24:58 GMT

Let's see now..You go to the race track and play a trifecta and it pays 600.00 for a 2.00 tri you have to pay taxes on it but they tell you that if you play a 1.00 tri twice for 2.00 on the same numbers it pays you 300.00 for the 1.00 tri and they tell you that way you don't have to pay taxes..Makes sense to me

Reply #11

Jack-C — Tue, 13 Oct 2009 13:19:00 GMT

You will have to show me where the IRS says that they don't tax gambling winnings under $600. They don't require the payor to withhold taxes, but they still require you to claim it on your tax return. You can then deduct gambling losses (proveable) up to the amount that you won.

Reply #10

lovinwinning — Tue, 13 Oct 2009 13:11:20 GMT

Never thought of it that way .

Reply #9

Stack47 — Mon, 12 Oct 2009 13:00:41 GMT

The reason the IRS code doesn't tax gambling winnings under $600 is because the millions of lesser amount scratch-offs and other winners. Do you really believe there would be any lottery, casino slot machines, or pari-mutual race betting if every time someone won $2 they had to record the winnings or fill out a tax form to get their winnings? The paperwork would be a nightmare.

The tax codes allow us to deduct gambling losses and it applies to winnings under $600 too. If you have ever done an... [ More ]

Reply #8

LANTERN — Mon, 12 Oct 2009 06:14:44 GMT

Not only because it is the law, but since you do play online, there might even be more of a risk, better find a way to add any such income to all the other income and pay the taxes if any is owed, if you win way too much, maybe better to pay some or all of the tax during the year as somebody said.

Reply #7

tiggs95 — Sun, 11 Oct 2009 16:26:36 GMT

If like when I cashed pick 3 for 1,200.00 dollars all at once with 3 tickets I'm supossed to file that even if they diden't ask for my SS nunmber..Yeah I'm going to tell them I won 400.00 on a 1.00 ticket even if they say I DON'T HAVE TO..duuuuh

Reply #6

inittowin — Sun, 11 Oct 2009 16:04:15 GMT

Correction.

ANY money that is acquired is taxable.

Such as lottery winnings or even someone handing you $20. Usually with any winnings under $600, IRS doesn't require the payer to create paper work for taxes at that time and leaves it to the person receiving it, to add it to their taxes when they prepare their annual tax return.

IRS will look at any money received as income and is taxable (except insurance payouts). It should be added to any other income that you have (earned or unearne... [ More ]

Reply #5

tiggs95 — Sun, 11 Oct 2009 15:27:45 GMT

You should never have to pay taxes on pick 3..Only way you need to pay taxes is if a 1.00 ticket is more then 600.00..If you say have 100 1.00 pick 3 and it pays 599.00 for each ticket you can cash them all at once and not have to pay taxes..Like I just said if a 1.00 ticket is more then 599.00 then you have to file taxes..Call the lottery outlet and ask them and they will tell you the same thing..

Reply #4

wpb — Sun, 11 Oct 2009 15:23:48 GMT

If you are speaking about playing online and playing with a site outside the USA, you do not pay USA taxes. That's why it is illegal in the USA. They can not figure out a way to make citzen pay taxes, so they tried to stop us from playing.

Reply #3

KidZero — Sun, 11 Oct 2009 15:14:59 GMT

Should I only file if I accumulate more than 1,000 dollars

Reply #2

tiggs95 — Sun, 11 Oct 2009 14:52:31 GMT

Why would you have to pay taxes on pick 3?...

Reply #1

Raven62 — Sun, 11 Oct 2009 14:43:52 GMT

Quarterly Estimated Tax (Form 1040-ES

Can I get some help with online lottery tax info

KidZero — Sun, 11 Oct 2009 14:28:20 GMT

If anyone here plays online could you maybe give me some advice on how to pay taxes if i win online lottery, such as pick 3