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U.S. taxes on Irish Lotteries?

Topic closed. 8 replies. Last post 10 years ago by pumpi76.

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Philadelphia
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Posted: October 9, 2006, 10:33 am - IP Logged

Just wondering if anyone knows the answer to this question....


I am a US citizen but presently live in Ireland. I play Ireland's National Lottery, and also the transnational Euromillions lottery, both of which pay out prizes as tax-free lump sums. But if (fingers crossed) I were lucky enough ever to win any money in either lottery, would I have to pay *U.S.* taxes on my winnings?


    Litebets27's avatar - power
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    Posted: October 9, 2006, 10:54 am - IP Logged

    I believe you will pay taxes on your winnings if you transfer your funds into any U.S. Banks or Financial Institutions under U.S. control. Or if you move back to the U.S. and file your annual income tax there is a question about foreign holdings that you may have. I'm not sure the Government can tax you on it. (but I maybe wrong)

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      Coin Toss's avatar - shape barbed.jpg
      Zeta Reticuli Star System
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      Posted: October 9, 2006, 2:15 pm - IP Logged

       I know the government taxes the Irish sseepstakes when Americans hit it- even though it is illegal to play it in the U.S! Figure that one out.  

      Of course, this is the same government that requires both dope dealers and bookies to register and pay $50 for a rubber stamp.  Of course, none of them do, but believe it or not there is such a law.

        Badger's avatar - adu50016 NorthAmericanBadger.jpg
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        Posted: October 9, 2006, 8:44 pm - IP Logged

         I know the government taxes the Irish sseepstakes when Americans hit it- even though it is illegal to play it in the U.S! Figure that one out.  

        Of course, this is the same government that requires both dope dealers and bookies to register and pay $50 for a rubber stamp.  Of course, none of them do, but believe it or not there is such a law.

        I believe there are a number of laws like this.  I've heard they pass these just so there is one more thing that they can hold someone on (like a drug dealer or bookie) if they want to do so this way. It's also one more charge they can levy against them.

        BTW -- I thought there was no more Irish Sweepstakes?

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          dvdiva's avatar - 8ball

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          Posted: October 9, 2006, 11:35 pm - IP Logged

          The Irish lottery never seems to get as big as the UK one and I am only aware of scam sites like OSA selling tickets.

          As far as taxes go you can form a trust and only transfer some of it to the US but you had better make sure NEVER to access the offshore account in the US or use a credit card tied to it in the US. 

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            Posted: October 10, 2006, 3:16 am - IP Logged


            It's really simple.

            If you're a US citizen you pay US income tax on income that isn't exempt.

            If you're a US resident you pay US income tax on income that isn't exempt.

            Keeping the money in another country may keep the IRS from knowing about income, but doesn't make it exempt.

            If the IRS finds out you didn't pay taxes on income you tried to hide in another country you will probably end up very unhappy with the result. 

              Todd's avatar - Cylon 2.gif
              Chief Bottle Washer
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              Posted: October 10, 2006, 10:09 am - IP Logged

              I believe there are a number of laws like this.  I've heard they pass these just so there is one more thing that they can hold someone on (like a drug dealer or bookie) if they want to do so this way. It's also one more charge they can levy against them.

              BTW -- I thought there was no more Irish Sweepstakes?

              It's not an "Irish Sweepstakes", it is the Ireland National Lottery.

              Results are posted on Lottery Post here: http://www.lotterypost.com/results/ie

              The official web site is here: http://www.lotto.ie/

               

              Check the State Lottery Report Card
              What grade did your lottery earn?

               

              Sign the Petition for True Lottery Drawings
              Help eliminate computerized drawings!

                Preppy's avatar - scene sunoverlake.jpg
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                Posted: October 10, 2006, 11:25 am - IP Logged

                Just wondering if anyone knows the answer to this question....


                I am a US citizen but presently live in Ireland. I play Ireland's National Lottery, and also the transnational Euromillions lottery, both of which pay out prizes as tax-free lump sums. But if (fingers crossed) I were lucky enough ever to win any money in either lottery, would I have to pay *U.S.* taxes on my winnings?


                Yes, you would have to pay US taxes on your winnings from Ireland's National Lottery and/or Euromillions lottery.

                The Internal Revenue Code is unkind to lottery winners.  U.S. citizen or resident alien is generally subject to U.S. tax on total worldwide income. Under the US Tax Code, all income for US citizens is taxable, whether earned in the US, in a foreign country, or on the Internet. However, if you are a United States citizen or a resident alien who lives and works in a foreign country, you can take advantage of the Foreign Earned Income Exclusion and the Foreign Tax Credit to exclude all or part of your foreign earned income.

                Under the foreign earned income exclusion, you can exclude up to $80,000 per year from federal income taxes. You need to meet one of two residency tests in order to qualify. However, you would not be eligible if you simply flew/drove to a foreign country for a short visit.

                With the Foreign Tax Credit, you can get a dollar for dollar tax credit in the US for taxes paid to foreign countries. Since Ireland does not tax lottery winnings, you will most likely not be able to get credit.

                In the US, the payer (state lotteries, casinos, and horse racing tracks) will send you -- and the IRS -- a Form W-2G showing how much you won and how much, if any, was withheld for federal taxes. Repatriation of income as far as gambling is not relevant. However it would be interesting to find out does Ireland have such a form or a form that is equivalent to Form W-2G? Does or will Ireland send such a form to other tax agencies outside of Ireland?

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                  Posted: October 10, 2006, 2:45 pm - IP Logged

                  random generator put it this way...If you have nothing, they can't tax you...

                   

                   

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