Taxable winnings

Reply #14

zephbe — Mon, 15 Apr 2019 16:06:30 GMT

Reply #13

zephbe — Mon, 15 Apr 2019 16:02:40 GMT

If it's not written down it didn't happen.

Reply #12

TheMeatman2005 — Mon, 15 Apr 2019 09:57:20 GMT

Good topic.

I would think that most, if not all casual gamblers do not report any wins under $600, but most probably keep some sort of an expense record just in case they do. This way they can deduct their loses off the win.

Reply #11

Murgatroyd — Mon, 15 Apr 2019 03:40:32 GMT

Legally, you're obligated to report all your winnings, no matter how small, though you can deduct your losses (up to the amount of your winnings) to offset them. In practice, they don't care about the small amounts most people win. In the scenario you describe, you might get away with not reporting, but if someone who doesn't like you notices that you're living above your apparent means, and tips off the IRS, you could be in for a bad time.

Reply #10

Stack47 — Mon, 15 Apr 2019 01:39:50 GMT

I think this is an interesting topic.

Me too and tax obligations are something every lottery player should know. Anonymity for large jackpot winners is a hot topic that only applies to a tiny percentage of lottery players, but most players will eventually win something and the last thing they need is tax problems.

Reply #9

Stack47 — Mon, 15 Apr 2019 01:31:54 GMT

I play Online and have a record of every transaction similar to using a player's card at a casino. The rule for getting W-2G applies for any win over $601 and if the 2018 wins were accumulative, the state or the IRS would have notified me. Had a horse racing account for years I use once or twice a year for the KY Derby and other big races and never had problems for not reporting small non W-2G wins.

But you are correct about Big Brother knowing everything about our Online play.

Reply #8

grwurston — Mon, 15 Apr 2019 00:57:19 GMT

You could keep a log of how much you spend on each drawing just as you would track anything else lottery related. You could save the receipts as you said also.

As far as cashing the tickets you could have up to a year to do it, depending on your state. So you could cash a couple here, a couple there. Deposit a little here, a little there. Be discreet.

If anybody gets too nosy you could just tell them, Hey I robbed a bank.

Reply #7

Soledad — Mon, 15 Apr 2019 00:20:00 GMT

Thanks Raven and everyone else. I think this is an interesting topic. They say you don t have to report it under $600, but say you win $100 straight on pick3 with a payout of $500 each ticket. You then have $50,000 cash untaxable. But what happens when you say deposit $5,000 at a time repeatedly, start paying things off, take some trips, put away for funds. I mean there is a chance you would have to explain where the money came from. So do you just keep the itemized receipts of the numbers you p... [ More ]

Reply #6

grwurston — Sun, 14 Apr 2019 22:36:37 GMT

If I might add, how much you wager would also be on your credit or debit card account.

Reply #5

LiveInGreenBay — Sun, 14 Apr 2019 22:27:27 GMT

I heard people can play the lottery online in some states. Don't know if that's true, but if it is, don't do it. Something tells me the IRS would have a record of who you are and all your wins, small or large.

Reply #4

grwurston — Sun, 14 Apr 2019 20:52:58 GMT

If you win a $20 or more straight on a pick 3 number, after you cash the tickets do not put it in the bank all at once. The banks are required to report deposits of 10k or more to the IRS.

Anything under $600 isn't reported unless you report it.

In the last PB drawing there were 654,637 winners of $100 or less.

In the last MM drawing there were 597,714 winners of $500 or less.

How many winners do you think reported it

Reply #3

Raven62 — Sun, 14 Apr 2019 19:30:39 GMT

You'll find some good Tax advice here:

https://www.hrblock.com/tax-center/income/other-income/gambling-winnings-tax/

What they don't address is Paying Estimated Tax Quarterly in order to avoid a large Tax Bill in April.

Reply #2

LiveInGreenBay — Sun, 14 Apr 2019 19:08:12 GMT

I wouldn't report crap. I say if you can get away with it...Do it. Here's a fact, its legal for members of Congress to do insider stockmarket trading, for us, we'd go to jail. Congress makes the mafia look like girlscouts. Fk them.

Reply #1

Stack47 — Sun, 14 Apr 2019 18:41:43 GMT

The following rules apply to casual gamblers who aren't in the trade or business of gambling. Gambling winnings are fully taxable and you must report the income on your tax return. Gambling income includes but isn't 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.

Don't take my word that it's right thing to do, but I was told if your winning weren't reported and unless you plain on ded... [ More ]

Taxable winnings

Soledad — Sun, 14 Apr 2019 15:50:51 GMT

How exactly are lottery wins taxed? I know if you win over $600 here in NY you get your check instead of cash and your w2, but say you continually win 500 a week, just an example per se. At the end of the year you have $26,000 right, but it s not reported. It s cash winnings, hand over fist. Do you have to explain that at all to the tax man. What scenarios would thinking about reporting under $600 wins would you see as feasible. And does that mean you have to keep every single goded ticket you g... [ More ]