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SC pick-4 tax question

Topic closed. 2 replies. Last post 12 years ago by kaspersky.

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greenville
United States
Member #9821
December 22, 2004
2 Posts
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Posted: December 27, 2004, 9:02 pm - IP Logged

    Dear members,

Please help me with this myth regarding South Carolina Pick-4 tax :

1.If I win a $1 straight bet equal to the amount of $5,000 dollars, do I have to pay tax on this winning? And if yes then does any one know the percent they will take out from it ?

2.I live in the state of North Carolina, and is that mean I have to pay tax on Both states SC and NC?

I had search all over the google and SC official FAQ, but there is no where seem to tell about this.

Thank You so much for any helps,

Regards,

    straightchaser's avatar - avatar
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    SC
    United States
    Member #4355
    April 15, 2004
    345 Posts
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    Posted: December 28, 2004, 6:25 pm - IP Logged

    Kapersky,

    I would guess that this would be the same as working in a state in which you do not reside and having to "pay" taxes in both states. Well, this is how I think this would work in your case, although you should confer with a CPA or a certified tax preparer.  Let's say you won 5K in SC, you would get a 1099 from SC indicating your winnings. You would file your NC taxes, with a SC tax form in which you would indicate your miscellaneous income as lottery winnings, pay your taxes on it, and list this as taxes paid to SC on your NC return, include a copy with your NC return, where you would write it off as taxes paid to another state.  But, I think you've probably wagered enough to claim "that you've also lost at least 5K", in which case you would end up in actuality not paying any taxes on your 5K of winnings. 

    Hope that makes some sense. If not, as I said, confer with a CPA. That's what I do when I win big!

    'chaser

    It's unlikely though that they'll come after you for the taxes if you pay NC and the Feds.

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      greenville
      United States
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      December 22, 2004
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      Posted: December 29, 2004, 12:55 am - IP Logged

      Dear straightchaser,

      Thanks for your reply, It sound much better than what I imagined about this tax law .

      I still not winning anything from pick-4 yet as to this date, but the reason why

      I am concerned is because I was thinking of winning 5,000(very hard) and then have

      to pay taxes on both states which I probably ended up with about 2,500 .Then it's

      not worth anything to kept chasing the winning. Gosh I dont against taxes, but not

      on lottery taxes like this. The poor will get poorer....



      Thanks again



      Best regards,