taxessss and the lottery

Reply #22

Lottery_Analyst — Tue, 05 Oct 2004 20:38:32 GMT

four4me,You are referring to state specific, which is fine. But from a federal or IRS point of view, your losses are deductible all year long, from January 1st to December 31st of each year, up to the amount that you won, even in MD. The individual state laws vary but the IRS Federal ruling does not.Also people, please know that just keeping your lossing tickets is not enough. If you are ever audited the IRS will not accept that. You MUST keep a log that supplies vital info such as date of t... [ More ]

Reply #21

CASH Only — Tue, 05 Oct 2004 13:38:25 GMT

I live in NY.

Reply #20

four4me — Sun, 03 Oct 2004 18:10:57 GMT

In some states you might. But not in MD if you bought 1000 dollars of losing tickets before June 1st. they don't count as a right off. Only the loosing tickets after your win count towards your tax break and only like 80% of them can be declared for any tax break to kick in. I'm just using June as a reference point. If you won 5000 on December 29th and cashed the ticket you only have 2 days to come up with any loosing tickets to declare. Even if you had 1500 dollars worth of losses for the whole... [ More ]

Reply #19

CASH Only — Sun, 03 Oct 2004 17:26:50 GMT

I thought you had the whole year.

Reply #18

four4me — Wed, 29 Sep 2004 14:02:46 GMT

Also in many states if you win say $5,000 in June you cant declare any of your losses before June. To claim your losses it starts the day you win you'll have 6 months to come up with $5,000 loosing lottery tickets or gambling debts, in order to use them for any tax break. Likewise if you win in December you might want to wait until January to cash any big tickets. The tax break for many people will only apply for those people who itemize deductions

Reply #17

RJOh — Wed, 29 Sep 2004 08:50:29 GMT

Babel,It's kinda like those women on the Oprah show that were given those free $28,000 cars. The government looks as those cars as additional income not as a gift from the family, so they will have their taxable income increased by $28,000 and if that put them in the 25% tax bracket, they will owe $7,000 in additional taxes. If they were earning $20K per year, they are going to now pay taxes as if they earned $48K per year, so some of them are selling their cars to pay the taxes. They didn't... [ More ]

Reply #16

Babel — Wed, 29 Sep 2004 07:36:47 GMT

Quote: Originally posted by RJOh on September 28, 2004 It would be nice to be able to deduct all your loses from your winnings before considering them as additional taxable income . Over two years ago I matched 5 of 6 in the Ohio Lottery which paid $1500. Since I could only deduct a loss up to the amount I won and not my actual lost, the fact that I spent $2500 for lottery tickets and won $1500 actually increased my taxes for that year. I ended up having to pay $300 more taxes to cover the $15... [ More ]

Reply #15

RJOh — Tue, 28 Sep 2004 22:06:48 GMT

It would be nice to be able to deduct all your loses from your winnings before considering them as additional taxable income . Over two years ago I matched 5 of 6 in the Ohio Lottery which paid $1500. Since I could only deduct a loss up to the amount I won and not my actual lost, the fact that I spent $2500 for lottery tickets and won $1500 actually increased my taxes for that year. I ended up having to pay $300 more taxes to cover the $1500 increase in my income even though my net gain was a... [ More ]

Reply #14

qutgnt — Tue, 28 Sep 2004 20:56:53 GMT

This is why everyone should always hold on to their losing tickets and pick them up the floor all year long if need be just in case, that away you can write off some of your gambling losses.

Reply #13

Lottery_Analyst — Tue, 28 Sep 2004 20:17:20 GMT

The UK Lottery is not Tax Free for a US Resident if the IRS finds out you won........

Reply #12

CASH Only — Sat, 25 Sep 2004 14:09:00 GMT

Pretty tempting.

Reply #11

NETGURU — Wed, 22 Sep 2004 16:06:32 GMT

Guess the best way to play the lottery is with tax-free, lump sum online syndicates e.g play the UK lotto/euromillions with VWD or someone like that.Hate tax grrrrrtom

Reply #10

CASH Only — Mon, 20 Sep 2004 21:09:21 GMT

I'd still take the lump sum.

Reply #9

camden2004 — Sun, 29 Aug 2004 03:43:12 GMT

lol--he really did the math

Reply #8

rabbitfoot — Sun, 29 Aug 2004 02:21:03 GMT

Like it or not, Uncle Sam doesn't take out enought! He only wants 25% up front but the top income bracket is 35%. So at the end of the year you are going to have to pony up another 10% on a major jackpot. Here in Illinois, we also have a 3% state tax. Total= 38% of your winnings. And of course, if you take a lump sum, you only get about 51% of the advertised amount to start with.$294 million x 51%= $150 million(rounded off)$150 million less 38%=$93 million(rounded off)Remember, there were $58... [ More ]

Reply #7

aftermath — Sun, 29 Aug 2004 02:12:45 GMT

I think people should pay taxes on the innitial winning but not pay a Gift Tax when trying to give money to friends, family, and relatives. Actually once the Government takes their taxes they should never touch another dime again.

Reply #6

DoctorEw220 — Sat, 28 Aug 2004 23:30:57 GMT

States and the IRS love it when someone in the state wins the lottery because they get money, and they should since it is income, but they are just taking out way too much from our winnings. I know people who will just play the daily number in PA just because they can win day after day, and not have to pay taxes on it.

Reply #5

four4me — Sat, 28 Aug 2004 22:20:52 GMT

People shouldn't have to pay taxes if they win. The states make money on the lottery and they invest it. The people that win large amounts are already subject to paying more taxes because they move to a different tax bracket. We started the country because we were being taxed without representation. Now we are taxed worse than ever and we continue to vote the representatives in. Many of whom run on a ticket saying no more taxes, then after a year in office go back on their words and empty the po... [ More ]

Reply #4

DoctorEw220 — Sat, 28 Aug 2004 20:56:38 GMT

perhaps they could have kind of a flat tax on lottery winnings, but the amount depends on how much you win. for example, if you win $10,000 or less, no taxes taken out. $10,000-$50,000=$2,000 taken out. $50,000-$250,000=$10,000 taken out. $250,000-$500,000=$50,000 taken out. $500,000-$1 million= $75,000 taken out. $1million-10 million= $150,000 taken out. $10 million-50 million= $2 million taken out. $50 million-100 million= $5 million taken out. $100 million-200 million= $10 million ta... [ More ]

Reply #3

lottoscorp — Sat, 28 Aug 2004 20:34:42 GMT

This o

Reply #2

DoctorEw220 — Sat, 28 Aug 2004 20:33:06 GMT

ok. federal tax is 25 %, which is kinda reasonable because of the tax bracket that you will be going into, but i think that the states shuldn't take out taxes on winnings. with ohio's super lotto plus, if you take the cash option, half is already taken out, then another 12.5% is then taken out, and then another 1.5% taken out. if one tkes the cash option in ohio, they wind up only seeing 36% of the annuitized value. on their where the dollar goes section, they should point out that only 35... [ More ]

Reply #1

ryanm — Sat, 28 Aug 2004 19:34:40 GMT

Yeah, I think the cash value was $168 million, so they really took out only $51 million.

taxessss and the lottery

CASH Only — Sat, 28 Aug 2004 18:35:26 GMT

Camden:Not quite. $294m was the ANNUITY value; $117m is the CASH value AFTER withholdings.