Welcome Guest
Log In | Register )
You last visited January 19, 2017, 8:41 pm
All times shown are
Eastern Time (GMT-5:00)

Letting Someone Else Claim My Powerball Winnings

Topic closed. 28 replies. Last post 9 years ago by RJOh.

Page 1 of 2
PrintE-mailLink
TeaRowz's avatar - yellowrose bullet1.jpg
New Member
Maine
United States
Member #55876
October 23, 2007
7 Posts
Offline
Posted: October 23, 2007, 12:25 pm - IP Logged

Hello,

I am new to this forum, and a first-time Powerball player.  I'm not sure yet, but I believe I've won $800 on my ticket!

Problem is, I am disabled and exist on Supplemental Security Income (SSI), live in low-income housing, get food stamps... you know, that 'living high-on-the-hog' lifestyle.

For me to claim my winnings would require reporting my winning to everyone in the government, and losing benefits Confused.

Is it legal to ask someone else to cash in my ticket for me?  Is that an unfair thing to ask of someone in the first place? 

Any thoughts on this would be highly appreciated.

    RJOh's avatar - chipmunk
    mid-Ohio
    United States
    Member #9
    March 24, 2001
    19900 Posts
    Offline
    Posted: October 23, 2007, 1:00 pm - IP Logged

    I've read about several cases of people receiving public assistance or being behind with their child support allowing someone else to collect their lottery winnings for them and feeling cheated.  You have to remember the person collecting your winnings has to report it as his income too so he has to pay taxes on it in his income bracket.  If he's in the 25% tax bracket, he's going to owe $200 of extra taxes plus he going to want at least a $100 for his trouble and there goes $300 of that $800 or worst he will want to split the after taxes amount in half and only give you $300 . 

    If you're really that poor you might lose less by claiming it yourself than it would cost to have someone else claim it for you,

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

      Raven62's avatar - binary
      New Jersey
      United States
      Member #17843
      June 28, 2005
      51098 Posts
      Offline
      Posted: October 23, 2007, 1:01 pm - IP Logged

      If you have to lie about your winnings: Maybe you shouldn't play the Lottery!

      A mind once stretched by a new idea never returns to its original dimensions!

        bashley572's avatar - starwars14
        West Side of Sunny Florida
        United States
        Member #55048
        September 8, 2007
        3371 Posts
        Offline
        Posted: October 23, 2007, 1:14 pm - IP Logged

        If you have to lie about your winnings: Maybe you shouldn't play the Lottery!

        I agree, I can see if you won EIGHT THOUSAND how that would effect your income, but from what I understand you should be able to earn alot more then EIGHT HUNDRED before your benefits get hit.

        Pumpkin

        Money won is twice as good as money earned!

          TeaRowz's avatar - yellowrose bullet1.jpg
          New Member
          Maine
          United States
          Member #55876
          October 23, 2007
          7 Posts
          Offline
          Posted: October 23, 2007, 1:52 pm - IP Logged

          I've read about several cases of people receiving public assistance or being behind with their child support allowing someone else to collect their lottery winnings for them and feeling cheated.  You have to remember the person collecting your winnings has to report it as his income too so he has to pay taxes on it in his income bracket.  If he's in the 25% tax bracket, he's going to owe $200 of extra taxes plus he going to want at least a $100 for his trouble and there goes $300 of that $800 or worst he will want to split the after taxes amount in half and only give you $300 . 

          If you're really that poor you might lose less by claiming it yourself than it would cost to have someone else claim it for you,

          Thanks for enlightening me about having someone else claim the ticket.  I've been disabled, and on government assistant most of my adult life - I hadn't even thought that the person who claimed it would then need to pay taxes on it.  But, I do have a relative who loves me enough to do that for me without asking for money for their trouble, or splitting the amount.

          While to do it this way may be dishonest, I don't feel terribly guilty when I know of the dishonesty of people who fraud the government out of millions by claiming  disability when they are not disabled.  Those of us who are disabled, and yes, very poor, should be able to win some money without being penalized for it. 

          "One good judge of a man's character is how he treats another who can do him no good."  ~ Author Unknown

            TeaRowz's avatar - yellowrose bullet1.jpg
            New Member
            Maine
            United States
            Member #55876
            October 23, 2007
            7 Posts
            Offline
            Posted: October 23, 2007, 1:53 pm - IP Logged

            If you have to lie about your winnings: Maybe you shouldn't play the Lottery!

            I doubt that would have been your response if you had a loved one who is severely disabled, barely able to afford to eat, and who had won some money.

              TeaRowz's avatar - yellowrose bullet1.jpg
              New Member
              Maine
              United States
              Member #55876
              October 23, 2007
              7 Posts
              Offline
              Posted: October 23, 2007, 1:56 pm - IP Logged

              Yes, I can EARN a certain amount of money before it would affect my benefits, but this isn't earned income.  The full amount of my winnings would be considered in future determinations of my benefits.  And even this 'small' amount could really hurt me.

                bashley572's avatar - starwars14
                West Side of Sunny Florida
                United States
                Member #55048
                September 8, 2007
                3371 Posts
                Offline
                Posted: October 23, 2007, 2:22 pm - IP Logged

                Well I learned something new today.  Didn't know cashing in winnings would count against your benefits.  I am sure there are ALOT of people with shocked looks on thier face after they have cashed a winner only to find there benefits hit!!! Crying

                Money won is twice as good as money earned!

                  Avatar
                  Kentucky
                  United States
                  Member #32652
                  February 14, 2006
                  7343 Posts
                  Offline
                  Posted: October 23, 2007, 2:33 pm - IP Logged

                  Hello,

                  I am new to this forum, and a first-time Powerball player.  I'm not sure yet, but I believe I've won $800 on my ticket!

                  Problem is, I am disabled and exist on Supplemental Security Income (SSI), live in low-income housing, get food stamps... you know, that 'living high-on-the-hog' lifestyle.

                  For me to claim my winnings would require reporting my winning to everyone in the government, and losing benefits Confused.

                  Is it legal to ask someone else to cash in my ticket for me?  Is that an unfair thing to ask of someone in the first place? 

                  Any thoughts on this would be highly appreciated.

                  Your story would have a little more credibility had you said the ticket was gift or you found it. I'm not sure if the point you're trying to make is that people on public assistance buy lottery tickets, if they win they don't want anybody to find out, or they are so ignorant they don't know when they won (I'm not sure yet, but I believe I've won $800 on my ticket!).

                  "Is it legal to ask someone else to cash in my ticket for me?  Is that an unfair thing to ask of someone in the first place?"

                  Is it just a coincidence that you don't know if the ticket is a winner but know there would be tax consequences on the amount you chose?

                  FYI, there are no Powerball prizes of $800. You could have 2 $400 winning tickets but you could cash them at any retailer without filling any tax forms. 

                    Raven62's avatar - binary
                    New Jersey
                    United States
                    Member #17843
                    June 28, 2005
                    51098 Posts
                    Offline
                    Posted: October 23, 2007, 2:40 pm - IP Logged

                    I doubt that would have been your response if you had a loved one who is severely disabled, barely able to afford to eat, and who had won some money.

                    When folks circumvent the rules, they usually wind up losing in the end.

                    For example: If it was later discovered that the income was not reported, it's possible to lose the entire Disability Payment.

                    A mind once stretched by a new idea never returns to its original dimensions!

                      TeaRowz's avatar - yellowrose bullet1.jpg
                      New Member
                      Maine
                      United States
                      Member #55876
                      October 23, 2007
                      7 Posts
                      Offline
                      Posted: October 23, 2007, 2:51 pm - IP Logged

                      Your story would have a little more credibility had you said the ticket was gift or you found it. I'm not sure if the point you're trying to make is that people on public assistance buy lottery tickets, if they win they don't want anybody to find out, or they are so ignorant they don't know when they won (I'm not sure yet, but I believe I've won $800 on my ticket!).

                      I didn't explain things well.  This is the first time I've played Powerball, and I'm not yet sure how to calculate the winning.  I purchased five plays for $10 on a Power Play ticket.  I matched three numbers, and the Powerball number, and the PowerPlay number for that day was 4.  So, should that be $200 x 4? 

                        TeaRowz's avatar - yellowrose bullet1.jpg
                        New Member
                        Maine
                        United States
                        Member #55876
                        October 23, 2007
                        7 Posts
                        Offline
                        Posted: October 23, 2007, 2:54 pm - IP Logged

                        When folks circumvent the rules, they usually wind up losing in the end.

                        For example: If it was later discovered that the income was not reported, it's possible to lose the entire Disability Payment.

                        That's true, but there is a point of desperation at which to take that risk becomes easier.

                          RJOh's avatar - chipmunk
                          mid-Ohio
                          United States
                          Member #9
                          March 24, 2001
                          19900 Posts
                          Offline
                          Posted: October 23, 2007, 2:54 pm - IP Logged

                          Thanks for enlightening me about having someone else claim the ticket.  I've been disabled, and on government assistant most of my adult life - I hadn't even thought that the person who claimed it would then need to pay taxes on it.  But, I do have a relative who loves me enough to do that for me without asking for money for their trouble, or splitting the amount.

                          While to do it this way may be dishonest, I don't feel terribly guilty when I know of the dishonesty of people who fraud the government out of millions by claiming  disability when they are not disabled.  Those of us who are disabled, and yes, very poor, should be able to win some money without being penalized for it. 

                          Do your relative love you enough to pay taxes on your winnings from his pockets. 

                          That's kind of like these no name charities calling my home and telling me that they aren't asking me for a donation but they're just asking me to go around to my neighbors and collect donations to send to them.  It's a scam but it not my scam since I don't keep any of the money. 

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

                            Avatar
                            Kentucky
                            United States
                            Member #32652
                            February 14, 2006
                            7343 Posts
                            Offline
                            Posted: October 23, 2007, 3:12 pm - IP Logged

                            Thanks for enlightening me about having someone else claim the ticket.  I've been disabled, and on government assistant most of my adult life - I hadn't even thought that the person who claimed it would then need to pay taxes on it.  But, I do have a relative who loves me enough to do that for me without asking for money for their trouble, or splitting the amount.

                            While to do it this way may be dishonest, I don't feel terribly guilty when I know of the dishonesty of people who fraud the government out of millions by claiming  disability when they are not disabled.  Those of us who are disabled, and yes, very poor, should be able to win some money without being penalized for it. 

                            "While to do it this way may be dishonest, I don't feel terribly guilty when I know of the dishonesty of people who fraud the government out of millions by claiming  disability when they are not disabled."

                            The tax people don't care if you or your relative pays the taxes. And if you or they decided not to include the lottery winnings on next year's 1040 and get caught, justifying it by saying "but other people fraud the government out of millions" won't get you off the hook.

                            "Those of us who are disabled, and yes, very poor, should be able to win some money without being penalized for it."

                            That would also include the people you said "who fraud the government out of millions by claiming disability when they are not disabled". Does that mean the rest of us who work hard for our money should pay more in taxes to subsidize your gambling problem?

                            How exactly does that translate into "your" penalty when you're using "our" public assistance to buy lottery tickets?

                              Avatar
                              Kentucky
                              United States
                              Member #32652
                              February 14, 2006
                              7343 Posts
                              Offline
                              Posted: October 23, 2007, 3:18 pm - IP Logged

                              Your story would have a little more credibility had you said the ticket was gift or you found it. I'm not sure if the point you're trying to make is that people on public assistance buy lottery tickets, if they win they don't want anybody to find out, or they are so ignorant they don't know when they won (I'm not sure yet, but I believe I've won $800 on my ticket!).

                              I didn't explain things well.  This is the first time I've played Powerball, and I'm not yet sure how to calculate the winning.  I purchased five plays for $10 on a Power Play ticket.  I matched three numbers, and the Powerball number, and the PowerPlay number for that day was 4.  So, should that be $200 x 4? 

                              "I matched three numbers, and the Powerball number, and the PowerPlay number for that day was 4.  So, should that be $200 x 4?"

                              Nope, according to the Powerball website http://www.powerball.com/powerball/pb_prizes.asp matching 3 plus 1 with a Multiplier of 4 pays $400.