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lottery taxes

Topic closed. 52 replies. Last post 11 years ago by Chewie.

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Greenwich, CT
United States
Member #4793
May 24, 2004
1822 Posts
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Posted: November 15, 2005, 2:52 pm - IP Logged

Yes, yes, yes, BaristaExpress.  I always owe the government $1,000 in April, rather than having them owe me money. 

I'd rather use the government's money for a year, than have them use mine for a year!

    BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
    Magnolia, Delaware
    United States
    Member #18795
    July 20, 2005
    789 Posts
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    Posted: November 15, 2005, 2:54 pm - IP Logged
    OK Dvdiva, That is correct for MM, because of the time constraint! The constrictive receipt law can not be applied! But in the case of the PB winners, you are correct again! They had the time to get everything done in a timely manner and didn't for tax purposes and that just might go to court if the IRS chooses to do so!

    Keep dreaming the impossible dream, it just may come true! Thumbs Up

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      Sparta, NJ
      United States
      Member #18331
      July 9, 2005
      1977 Posts
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      Posted: November 15, 2005, 2:59 pm - IP Logged

      The next year (2006) they best be doing something (like giving to charity) to lower their tax rate or something as not to be paying such a high tax bill!

      Isn't charity is a percentage deduction, not a reduction in earned income?  It would appear to be cheaper to give it to the IRS.

      Cheers

      |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

      I only trust myself - and that's a questionable choice

        BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
        Magnolia, Delaware
        United States
        Member #18795
        July 20, 2005
        789 Posts
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        Posted: November 15, 2005, 3:52 pm - IP Logged

        OK Chewie, I have to give praise where praise is due! I highly regard your comments and views on here that are straight forward and make sense! But this last one that you just stated, doesn't sound like you!

        Isn't charity is a percentage deduction, not a reduction in earned income?  << That's Correct

        It would appear to be cheaper to give it to the IRS. << Why in gods name would anyone want to give the IRS money just because it's cheaper to do so? I'm sure as hell not going to! This is why and if you want to think I'm wrong for this way of thinking, then so be it! I for one would rather give a bunch of cash to American Charities like (Boys & Girls Clubs of America, Feed The Children, Community Centers & Food Banks in my area) and others! There are to many to name that are just for here in the U.S. I would not give not one penny to any national church organization that does work outside of the U.S.

        I feel by paying the IRS/Government anything, is just giving them money to give away in the form of economic subsidies (free heating oil, cheap gasoline, metric tons of wheat and etc.) to the N. Korea's of the World at the expense of the American tax payers! And That's BULLSHIT! When we have plenty of children here in the U.S. missing at least one or maybe even two meals a day, everyday of the week, because their parent(s) makes to much money for this or that assistance! We have plenty of homeless that need help! We have many upon many battered women and children shelters that could use help!      I say when every man, women and child has a roof over their head, is clothed and goes to bed every night with full tummies, is the only time we as a nation can spread the wealth of this great nation to other countries in need of help, BUT NOT UNTIL THEN! I will pay what I have to pay the IRS, But Not One Dollar More Than That! I will reduce my Tax bill by any means that are legal!

        Keep dreaming the impossible dream, it just may come true! Thumbs Up

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          Sparta, NJ
          United States
          Member #18331
          July 9, 2005
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          Posted: November 15, 2005, 4:13 pm - IP Logged

          I was speaking financially.  To keep the most in your pocket mentality. 

          I am rather cold-hearted, more so then most people, but there are areas I care about.  Animals would be extremely high on my list (I doubt they are deductable).  Paid awards to lost animal volunteers would be high.  Something like trips around the world to the top one hundred animal life savers from the combined hurricanes; with special stops at all the zoo's.  Find a couple thousand worthy shelters and set up a few million in trusts; for food, cleaning, stuff like that.  My support for these would not be for tax purposes.  It would be payback for the pleasure and joy my dog, Chewie, has given to me.

          Just for the record, PETA members and supporters can sit on a hot poker and spin.  I wouldn't give then a side glance.

          Cheers

          |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

          I only trust myself - and that's a questionable choice

            BaristaExpress's avatar - BaristaExpressMX zpsfb0d8b5d.png
            Magnolia, Delaware
            United States
            Member #18795
            July 20, 2005
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            Posted: November 15, 2005, 4:22 pm - IP Logged
            Point taken Chewie. And I also agree with you on the PETA members and supporters!

            Keep dreaming the impossible dream, it just may come true! Thumbs Up

              Preppy's avatar - scene sunoverlake.jpg
              Los Angeles County, CA
              United States
              Member #2161
              August 24, 2003
              30 Posts
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              Posted: November 16, 2005, 3:35 am - IP Logged

              Two questions
              1. Your lottery ticket is a November (2005) drawing. You realize the following day you are the grand prize winner. It will take until the following January (2006) to get everything order to collect your winnings. Are you taxed for 2005 income or at the time you recieve your payment?
              2. If you do not live in state ( collect taxes on lottery winnings) which you brought the tticket, do you pay taxes to both that state and the one you live in?
              Thanks

              Question number 2

               

              It is best to hire a very good lawyer and CPA.

               

              This is a very messy and very complicated situation. Some states don’t tax lottery winnings, while others do tax.  The state tax ranges from 2% in Nebraska to 10% in Montana.

               

              The tax treatment of lottery winnings depends upon the states involved, your state’s tax laws concerning lottery winnings from another state, and the tax reciprocity agreements between or among the states in question.

               

              In the case of California, California neither taxes residents nor taxes non-residents if they win a lottery that is played within the state of California. California does tax California residents on external lottery winnings (gambling winnings from another state). California has lottery tax reciprocity agreements with other states, but not with all of them.

               

              If a California resident buys a lottery ticket in another state and wins, the California resident would have winnings from gambling in another state and may have to file an income tax return with the other state and pay tax on the winnings.

               

              The non-California lottery winnings (gambling winnings from another state) are taxable in California. However, a California resident may claim an out of state tax credit on tax returns for the tax paid to the other state, if there is a tax reciprocity agreement.

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                Sparta, NJ
                United States
                Member #18331
                July 9, 2005
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                Posted: November 16, 2005, 9:49 am - IP Logged

                It is best to hire a very good lawyer and CPA.

                With a win of $185M, the answer is no.  Don't hire a very good lawyer.  Hire the BEST lawyer and the BEST CPA money can buy. Get over sheep mentality of being frugal - cheap - and spend some of that money on something worthwile; your future.

                Cheers

                |||::> *'`*:-.,_,.-:*''*:--->>> Chewie  <<<---.*''*:-.,_,.-:*''* <:::|||

                I only trust myself - and that's a questionable choice