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True or False

Topic closed. 12 replies. Last post 10 years ago by justxploring.

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Loseing Lottery tickets are a tax write off

True [ 25 ]  [62.50%]
False [ 6 ]  [15.00%]
I hope so [ 2 ]  [5.00%]
Dont Know [ 5 ]  [12.50%]
I will be looking in to it [ 2 ]  [5.00%]
Total Valid Votes [ 40 ]  
Discarded Votes [ 0 ]  
Amazing Grace's avatar - lion
rainbow lake
Canada
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November 2, 2005
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Posted: August 10, 2006, 12:18 pm - IP Logged

If you have lottery winning, those losing tickets can get you valuable tax deductions. For instance, if you win $1,000, but have $600 worth of losing tickets, you can itemize those losses and only pay taxes on $400 worth of lottery winnings. Lottery losses can be used as deductions to offset winnings for the same year in which they were purchased.


    United States
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    Posted: August 10, 2006, 12:29 pm - IP Logged

    Funny YOU started this thread. Canada DOES NOT tax lottery winnings.

      RJOh's avatar - chipmunk
      mid-Ohio
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      Posted: August 10, 2006, 1:02 pm - IP Logged

      In the U.S. the tax payer is allowed a standard $4600 loss up front.  A few years ago I matched 5of6 and won $1500 and I have over $2000 worth of losing tickets but I ended up paying an addition $250 for that win because my total losses including interest on credit, other expenses, other taxes and etc. and the $1500 I could deduct for losing lottery tickets didn't exceed $4600. 

      Since I could only claim losing lottery tickets up to amount I won, it would have been a different story had I won $10000 and had $9000 worth of losing lottery tickets.

      Whether losing lottery tickets are deductible for the average U.S. tax payers depends on the amount he wins and the total amount he claims as a loss.  The rules are different for a professional gambler who makes his living by gambling.

       * you don't need to buy more tickets, just buy a winning ticket * 
         
                   Evil Looking       

        Lottery_Analyst's avatar - Batman
        Georgia
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        Posted: August 10, 2006, 1:53 pm - IP Logged

        Amazing Grace,

        Please make note that you can't just keep your lossing tickets and deduct them from your winnings.  You "Must" maintain a Lottery Tax Log in order to make it legit.  Otherwise, if you get audited by the IRS they will just through out that deduction. 

        Check the IRS website at www.irs.gov if you have any other questions.

         

        Thanks,

         

        John - LA

          Coin Toss's avatar - shape barbed.jpg
          Zeta Reticuli Star System
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          Posted: August 10, 2006, 2:06 pm - IP Logged


          John - LA

          Good point.  A lot of people getconfused on this. First, as has been posted, the rule is you can deduct lossses up to your winnings. People try to 'write off' a $2,000 win with $4,000 in losses  - and they get those $4,000 in losses by scavenging lotto places, racetracks, Keno parlors, and sports books for losing tickets.

          There's even been cases where people have won something reportable late in the year and then put together their collections of losers all in December or even the lasr weeks of December.

            Avatar

            United States
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            Posted: August 10, 2006, 2:24 pm - IP Logged

            Funny YOU started this thread. Canada DOES NOT tax lottery winnings.

            Lottery winnings are probably the only thing Canada doesn't tax.

            (insert signature here)

              Amazing Grace's avatar - lion
              rainbow lake
              Canada
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              Posted: August 10, 2006, 4:29 pm - IP Logged

              Your right about that im afraid they will start a sunshine tax if solar power gets really going

                justxploring's avatar - villiarna
                Wandering Aimlessly
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                Posted: August 11, 2006, 12:03 am - IP Logged

                Your right about that im afraid they will start a sunshine tax if solar power gets really going

                Funny. There is a Sunshine Tax!  When you cross the border into Florida where there's an average of more than 300 days of sunshine a year, your income drops about 40%!  I call it the sunshine tax.  I guess you can also call it a tropical depression. 

                  Coin Toss's avatar - shape barbed.jpg
                  Zeta Reticuli Star System
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                  Posted: August 11, 2006, 12:44 am - IP Logged


                  Income drops 40% coming in from Georgia or Alabama? That's scary!

                  Or Cuba?

                  Green laugh

                    BobP's avatar - bobp avatar.png
                    Dump Water Florida
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                    Posted: August 11, 2006, 1:55 am - IP Logged

                    Lottery winnings are probably the only thing Canada doesn't tax.

                    That's because the tax is in the ticket price, so everyone pays the tax for the winner.  Certainly a more civilized method. BobP

                      bellyache's avatar - 64x64a9wg

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                      Posted: August 11, 2006, 11:46 pm - IP Logged

                      Amazing Grace,

                      Please make note that you can't just keep your lossing tickets and deduct them from your winnings.  You "Must" maintain a Lottery Tax Log in order to make it legit.  Otherwise, if you get audited by the IRS they will just through out that deduction. 

                      Check the IRS website at www.irs.gov if you have any other questions.

                       

                      Thanks,

                       

                      John - LA

                      I always thought that any tickets you had you could just right-off. I didn't know you had to keep track of them or anything. Thanks for the info John.

                      Dance like no one is watching.

                        RJOh's avatar - chipmunk
                        mid-Ohio
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                        Posted: August 12, 2006, 12:08 am - IP Logged

                        I always thought that any tickets you had you could just right-off. I didn't know you had to keep track of them or anything. Thanks for the info John.

                        You can write-off anything you think you can legally, it just if you get audited what you thought doesn't count, you need records to prove it. 

                        I have a $2 planner in which I write all my lottery spendings and winnings.  Tonight I entered MM/10/3  for 08/11 which shows I bought $10 worth of MegaMillions tickets on 08/11 and won $3( I had a 1+1 for $3).  Below that notation I added $7 to the total I've lost this year and put it and my losing tickets in a box.  I've kept the same type of records every year since I've started playing and have never used them for my taxes even for the year I won $1500.  Maybe this year will be my lucky year.

                         * you don't need to buy more tickets, just buy a winning ticket * 
                           
                                     Evil Looking       

                          justxploring's avatar - villiarna
                          Wandering Aimlessly
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                          Posted: August 12, 2006, 1:07 am - IP Logged

                          Amazing Grace,

                          Please make note that you can't just keep your lossing tickets and deduct them from your winnings.  You "Must" maintain a Lottery Tax Log in order to make it legit.  Otherwise, if you get audited by the IRS they will just through out that deduction. 

                          Check the IRS website at www.irs.gov if you have any other questions.

                           

                          Thanks,

                           

                          John - LA

                          Lottery-Analyst

                          I've never won enough to make a difference, but this is good to know for future reference. I don't think I buy enough tickets for it to matter, but I never even thought about keeping a log. It definitely makes sense. However, let's say I play the same games using the same numbers every week. Wouldn't a shoebox full of losing tickets, all with the same numbers be a pretty good indication that I was the person who bought them?