Taxes on tickets with advance drawings

Reply #4

maringoman — Wed, 23 Oct 2013 19:52:56 GMT

Technically you are supposed to report the $500s wins when doing your taxes and I am sure you would just like I would hehe

But if you want to avoid the withholding tax then it would be prudent to cash in the $500s after every drawing. Don't let the $500s accumulate because if they do then you will have to pay withholding tax.

Reply #3

haymaker — Wed, 23 Oct 2013 17:51:12 GMT

I agree w/ Jon D

If I were going to play the same #s 5 times I go w/ separate tix. just to be safe.

Reply #2

Jon D — Wed, 23 Oct 2013 16:30:34 GMT

It will be treated like 1 ticket winning $2500.

The IRS don't care about your playstyle arrangement with the lottery, they just care that you cashed 1 ticket winning $2500. It is reported as income and you then have to prove that it's not come tax time. If you blew through $3000 that year to get that $2500 win, you have to prove it wasn't net income.

If you do happen to win $500 on the first play of a advance play ticket, cash it. Then they should issue you an exchange ticket with the rema... [ More ]

Reply #1

TooTallLuke — Wed, 23 Oct 2013 16:10:01 GMT

Correct. The wins will be viewed as 5 different wins.

Taxes on tickets with advance drawings

schmuckatelly — Wed, 23 Oct 2013 13:50:33 GMT

Now I know if you have 5 seperate tickets with same numbers and they each win $500 I collect $2,500 without any tax information needed since it's not reported to the IRS unless its over $600, but what if I have one ticket with 5 draws and each drawing I win $500 and I collect after the last drawing, is it still unreported to the IRS