When is a winning ticket considered your income?

Reply #28

TheMeatman2005 — Sun, 01 May 2016 23:07:21 GMT

I'm not 100% sure, but my guess would be that the proceeds from that 2015 ticket cashed in 2016 would be 2016 income.

Lottery proceeds are treated differently than a pay check or commission earned.

The timing of taxes is based upon constructive receipt . It s just that constructive receipt does not happen before you receive your prize.

Reply #27

Murgatroyd — Wed, 20 Apr 2016 00:29:33 GMT

If it's the case I'm remembering, the judge determined that he had acted in bad faith by concealing the ticket (a valuable asset, though not income yet) during divorce proceedings, and awarded the entire prize to the wife.

Reply #26

LOTTOKING2016 — Tue, 19 Apr 2016 03:18:47 GMT

STFU KID

Reply #25

LiveInGreenBay — Sun, 17 Apr 2016 19:46:23 GMT

Last post to you lottoqueen. Grow up.

Reply #24

LOTTOKING2016 — Sun, 17 Apr 2016 14:36:25 GMT

STFU SON

Reply #23

LiveInGreenBay — Sun, 17 Apr 2016 12:36:10 GMT

You don't play the lottery? LOL! Thats why you call yourself lottoking huh? Bye bye kid.

Reply #22

LOTTOKING2016 — Sun, 17 Apr 2016 02:21:30 GMT

No son I don't play so how can I lose but when I do I end up winning bye loser :DD

Reply #21

LiveInGreenBay — Sat, 16 Apr 2016 15:10:41 GMT

Not quite bigmouth. Just old enough to know better. Don't worry about me, just concentrate on losing your money on the lottery.

Reply #20

Raven62 — Sat, 16 Apr 2016 07:57:40 GMT

Thanks for your advice: You should take your own advice

Reply #19

KY Floyd — Sat, 16 Apr 2016 07:20:02 GMT

As others have said, the ticket was clearly a joint marital asset. She owned a share as soon as he bought it, and was entitled to her share of the prize once it was paid. Waiting to claim the prize was no different than already having the prize money and not admitting it.

As far as taxes, they're based on constructive receipt. You can potentially claim the prize as soon as you can get to the lottery office and fill ot a claim form, but the ticket isn't worth anything before the lottery verifi... [ More ]

Reply #18

Stack47 — Sat, 16 Apr 2016 03:52:37 GMT

Having six months to cash the ticket means a player could easily pass the April 15 filing deadline. And according to this site:

The time you actually draw income from your lottery winnings starts the tax clock. You report your winnings on your tax return in the year you receive them. You will get a W-2G form showing how much you were paid and how much was withheld. Like with your W-2 form from work, attach the W2-G to your tax return when you file.

Reply #17

LOTTOKING2016 — Sat, 16 Apr 2016 03:28:42 GMT

U probably nearing your end :P so old :P

Reply #16

OldSchoolPa — Sat, 16 Apr 2016 03:15:53 GMT

Unless he could prove that she was against playing the lottery and had no earnings during that time. However, a smart man would have never let anyone know that he had won the lottery.

Reply #15

LiveInGreenBay — Fri, 15 Apr 2016 20:53:39 GMT

Hey bud. I'm older than you so stop posting crap. It was an interesting topic in my opinion. So STFU. OK

Reply #14

Raven62 — Fri, 15 Apr 2016 20:44:26 GMT

Once you reach 21 you'll start having life experiences that teach you about such things.

Reply #13

LiveInGreenBay — Fri, 15 Apr 2016 20:19:57 GMT

I wish. And

Reply #12

Raven62 — Fri, 15 Apr 2016 20:15:54 GMT

Right you are

Reply #11

Albeone — Fri, 15 Apr 2016 20:14:52 GMT

That's an interesting scenario indeed. I'm guessing the court determined the lottery ticket to be marital property because it was purchased during the time period when the couple where still legally married

Reply #10

Raven62 — Fri, 15 Apr 2016 20:14:35 GMT

Are you 21

Reply #9

Artist77 — Fri, 15 Apr 2016 20:13:30 GMT

Because it was money payable/accruing to him during the marriage...he just delayed collecting it to hide assets..

Reply #8

Artist77 — Fri, 15 Apr 2016 20:09:20 GMT

It is always the year you received the money.

Reply #7

LiveInGreenBay — Fri, 15 Apr 2016 20:03:40 GMT

OK but not long ago I remember a news story about a couple who were going through a divorce. The man won some money in the lottery but held the ticket until after the divorce. After the divorce, he cashed it, she found out about it and won a percentage through a court action. How is that possible

Reply #6

Raven62 — Fri, 15 Apr 2016 19:28:04 GMT

Right you are

Reply #5

Albeone — Fri, 15 Apr 2016 19:08:48 GMT

You would be considered entitled to the winnings at the time you make the claim and for tax purposes it is income in the tax year you claim the winnings.

Reply #4

destinycreation — Fri, 15 Apr 2016 19:08:27 GMT

I would think it becomes income when you collect it, when you cash in the ticket. You're not responsible for paying taxes on income that you never receive as winnings. No one, including yourself, even knows that you have that money coming to you, if you lose the ticket. So, why should you owe taxes on winnings that you have not collected yet ??

Which DATE counts, according to the IRS ??? The DATE that the ticket becomes a winning ticket, or the DATE that you cash the ticket in, and the state... [ More ]

Reply #3

MaximumMillions — Fri, 15 Apr 2016 18:32:43 GMT

You became entitled to it once your ticket won. So that would be the point it becomes income, I'd think.

Reply #2

Raven62 — Fri, 15 Apr 2016 17:43:46 GMT

You Win a Jackpot in December 2015, but you neglect to cash in the Ticket and theTicket Expires. Do you still Pay Taxes on the Winnings you didn't Collect

Reply #1

Raven62 — Fri, 15 Apr 2016 17:39:45 GMT

Seems obvious

When is a winning ticket considered your income?

LiveInGreenBay — Fri, 15 Apr 2016 17:33:41 GMT

If you bought a winning lottery ticket in December 2015 and didn't turn it in until January 2016, is that considered 2015 or 2016 income? I would guess 2015 but technically you don't have the money until 2016.