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Collecting Big Winnings

Topic closed. 34 replies. Last post 8 years ago by KY Floyd.

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Piaceri's avatar - sarsony1
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Posted: November 29, 2008, 7:45 pm - IP Logged

If you won a big payout at this time of the year, one that gets reported to the legalized theft department of the government (IRS), would you wait until after the first of January to collect?  Why or why not? Does the amount of the winnings make a difference?

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singlewinnersinglewinnersinglewinner   

    Guru101's avatar - rw6jhh
    Indiana
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    Posted: November 29, 2008, 7:54 pm - IP Logged

    Nope. I'm claiming it the very next lottery business, which could be the very next day. Why? Because I would feel more secure having the money in the bank.

    Gonna win.Big Smile

      justxploring's avatar - villiarna
      Wandering Aimlessly
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      Posted: November 29, 2008, 9:00 pm - IP Logged

      If you won a big payout at this time of the year, one that gets reported to the legalized theft department of the government (IRS), would you wait until after the first of January to collect?  Why or why not? Does the amount of the winnings make a difference?

      Right now I don't think I'd have the time to make plans, so I would probably claim it in January.  It wouldn't necessarily be because of taxes, since I'd still need to pay them, but I'd want to talk to a tax specialist anyway, probably an attorney.

      You can't hold on to your money until April of 2010 as others have written in past threads.  Once you receive your W-2G I believe you need to file your income tax return within a few months.  If you make a lot of interest, the IRS requires that you file an estimated tax quarterly.  I'm not a tax professional, but I believe I am correct. 

      Legalized Theft Department is LTD!   How about I Robbed You, Sucker!  What about started a thread asking what I.R.S. stand for?  LOL

      On the other hand, like Guru, I might claim it right away.  Certainly not the next day, but maybe I'd just pack up my car, give away what I can't take with me to charity, and claim my money the next week.  I could always rent a cottage on the beach and lay low until I got settled.

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        Kennesaw, GA
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        Posted: November 29, 2008, 9:02 pm - IP Logged

        I would wait until next year to claim.. I would legalize a business so that I have more available write-offs for that tax year.

          justxploring's avatar - villiarna
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          Posted: November 29, 2008, 9:04 pm - IP Logged

          I would wait until next year to claim.. I would legalize a business so that I have more available write-offs for that tax year.

          That's a good idea.

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            Entertaiment Capital
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            Posted: November 30, 2008, 2:23 am - IP Logged

             I'd just keep the ticket in a safe spot and contact a CPA first. I thought about going straight to the lottery office but I changed my mind. (I don't even play lotteries anymore...)

             Tax is inevitable and I would share small portions of my winning with my family. (Mom, dad, and two sisters.) The main reason to hire a lawyer is to set up a plan for financial neteggs and preparing for any possible BS lawsuits. If the JP amount is moderate I'd just go to the office with my lawyer, but winning a freaking huge amount will change that. And I would have my lawyer contact the lottery office first and make sure not a single media outlet comes in when I claim the prize. I want to stay unseen.

             The good thing is that the nearest lottery office is about half an hour drive from my town. (San Bernadino) and the second closest one is in Van Nuys. I don't have to travel that far. And it may sound silly but I think I will have to hire bodyguards when I claim the prize at the office. Yeah, too excessive but I have a really, really good reason to be unseen. It is impossible to go anonymous in California, but fortunately hundreds of people in So Cal share the same first and last name with me.

             If I don't give away my SSN the federal tax will be 30%. (If I do, then 25%) a 5% difference is huge, but I really, really have a good reason not to give away my SSN to the lottery authority. No, I do have a greencard and am a vet, but it's all about going stealth as much as possible. I've made too many enemies for the last nine years.

              DC81's avatar - batman39
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              Posted: November 30, 2008, 5:01 am - IP Logged

              If you won a big payout at this time of the year, one that gets reported to the legalized theft department of the government (IRS), would you wait until after the first of January to collect?  Why or why not? Does the amount of the winnings make a difference?

              Weird, I was thinking about this yesterday and was looking for the topic from a couple months ago about this very thing, didn't find it though.

              I don't know, it depends on if it's really beneficial to wait until after the New Year for tax reasons, obviously since I'd plan on setting up a Trust or LLC to claim the JP and it will take a little while to do that anyway. But if everything is set up before the end of the year (which is only a month away now) it might be hard to wait. Anyway, it does really depend on the benefits of doing so, if there are any.

              You can't predict random.

                benjya's avatar - alien helmet.jpg
                georgia
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                Posted: November 30, 2008, 7:22 am - IP Logged

                How long does it take to get your money after you present the winning ticket

                  charmed7's avatar - Lottery-013.jpg
                  MICHIGAN
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                  Posted: November 30, 2008, 2:01 pm - IP Logged

                  Wow wouldn't that be nice at this time of year.  But i would wait until the

                  beginning of the year, simply because you have to report it as added

                  income.  And personally I like to have some sort of plan mapped out

                  for myself.   And with that sum of money you better go with the

                  BIG DOGS(a attorney)  to help u think, because you're going to be so

                  excited, and proably won't be thinking clearly.

                    justxploring's avatar - villiarna
                    Wandering Aimlessly
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                    Posted: November 30, 2008, 2:37 pm - IP Logged

                    How long does it take to get your money after you present the winning ticket

                    Depends on the state and the amount.  I believe there have been other threads on this matter.  I once read that, in Florida, it takes about 2 weeks to receive a check for the Lotto.  I don't see why it takes more than a couple of days, however.   They either have the money or they don't!

                    Some state lottery sites advise winners after Christmas to wait until after Jan 1, since they probably don't have enough time to issue a check.  If you win after Nov 1 and collect the money in Jan, you will get a W2-G for 2009 anyway, so you'd then have time to make plans with a tax specialist. Jan 5 is only 5 weeks from Monday, so we're not talking about a long wait.  It would probably take that long just for me to snap out of of my shock-induced state.


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                      Posted: November 30, 2008, 3:27 pm - IP Logged

                      Depends on the state and the amount.  I believe there have been other threads on this matter.  I once read that, in Florida, it takes about 2 weeks to receive a check for the Lotto.  I don't see why it takes more than a couple of days, however.   They either have the money or they don't!

                      Some state lottery sites advise winners after Christmas to wait until after Jan 1, since they probably don't have enough time to issue a check.  If you win after Nov 1 and collect the money in Jan, you will get a W2-G for 2009 anyway, so you'd then have time to make plans with a tax specialist. Jan 5 is only 5 weeks from Monday, so we're not talking about a long wait.  It would probably take that long just for me to snap out of of my shock-induced state.

                      If you won a jackpot in 2008,I think your W2-G would reflect that you won the money in 2008.You would most likely have to pay taxes on the winnings for 2008,even if you didn't receive the money until 2009.The IRS and the state will take out most of the taxes right off the top but you would probably still owe more at tax time.I'd see a tax specialist,just to be safe.

                        mjwinsmith's avatar - moon

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                        Posted: November 30, 2008, 3:58 pm - IP Logged

                        If you won a jackpot in 2008,I think your W2-G would reflect that you won the money in 2008.You would most likely have to pay taxes on the winnings for 2008,even if you didn't receive the money until 2009.The IRS and the state will take out most of the taxes right off the top but you would probably still owe more at tax time.I'd see a tax specialist,just to be safe.

                        When Paid

                        A payment of winnings is considered made when it is paid, either actually or constructively, to the winner. Winnings are constructively paid when they are credited to, or set apart for, that person without any substantial limitation or restriction on the time, manner, or condition of payment. However, if not later than 60 days after the winner becomes entitled to the prize, the winner chooses the option of a lump sum or an annuity payable over at least 10 years, the payment of winnings is considered made when actually paid. If the winner chooses an annuity, file Form W-2G each year to report the annuity paid during that year.


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                          Posted: November 30, 2008, 5:12 pm - IP Logged

                          When Paid

                          A payment of winnings is considered made when it is paid, either actually or constructively, to the winner. Winnings are constructively paid when they are credited to, or set apart for, that person without any substantial limitation or restriction on the time, manner, or condition of payment. However, if not later than 60 days after the winner becomes entitled to the prize, the winner chooses the option of a lump sum or an annuity payable over at least 10 years, the payment of winnings is considered made when actually paid. If the winner chooses an annuity, file Form W-2G each year to report the annuity paid during that year.

                          You may be right,but it seems to me that if you won the money in 2008 the IRS would consider it  income earned in 2008.I'll let you know for sure after I win Tuesday nights MegaMillion drawing.~;)

                            GamerMom's avatar - tails

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                            Posted: November 30, 2008, 5:38 pm - IP Logged

                            Depends on the state and the amount.  I believe there have been other threads on this matter.  I once read that, in Florida, it takes about 2 weeks to receive a check for the Lotto.  I don't see why it takes more than a couple of days, however.   They either have the money or they don't!

                            Some state lottery sites advise winners after Christmas to wait until after Jan 1, since they probably don't have enough time to issue a check.  If you win after Nov 1 and collect the money in Jan, you will get a W2-G for 2009 anyway, so you'd then have time to make plans with a tax specialist. Jan 5 is only 5 weeks from Monday, so we're not talking about a long wait.  It would probably take that long just for me to snap out of of my shock-induced state.

                            they send a check? in the mail? surely you jest?!? I was hoping for a direct deposit when I hit the JP!

                              Piaceri's avatar - sarsony1
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                              Posted: November 30, 2008, 6:17 pm - IP Logged

                              they send a check? in the mail? surely you jest?!? I was hoping for a direct deposit when I hit the JP!

                              I'm pretty sure they settle these jackpots electronically. Especially the ones that require the W2G.

                              I think I would probably wait until after the new year if it was more than $20k. I keep all my non winning tickets to deduct, just in case.  Not that I have 20 thousand loser tickets or anything, lol. It seems that it would be beneficial to have more time for tax planning. I know for a fact that if you claim in January 2009, you don't have to file taxes until April 2010, but you do have to make a tax deposit of estimated taxes due by at least the quarter end.

                              I'll let ya'll know after I win this MM jackpot.....Wink

                              face

                              singlewinnersinglewinnersinglewinner