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Saving losing tickets?

Topic closed. 20 replies. Last post 8 years ago by Classic47.

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Posted: May 14, 2009, 4:50 pm - IP Logged

I read somewhere that saving losing tickets could help reduce taxes for smaller, but large enough prizes to be taxed on.  Is this true?  Because I have been saving my losing tickets. 

Also, in Michigan, there's a raffle where you can enter just by sending 10 dollars worth of losing tickets to win a million dollars!  So, am I the only one who saves my losing tickets and could it be benificial in the long run?

    Jack-C's avatar - us
    San Diego, CA
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    Posted: May 14, 2009, 4:55 pm - IP Logged

    I read somewhere that saving losing tickets could help reduce taxes for smaller, but large enough prizes to be taxed on.  Is this true?  Because I have been saving my losing tickets. 

    Also, in Michigan, there's a raffle where you can enter just by sending 10 dollars worth of losing tickets to win a million dollars!  So, am I the only one who saves my losing tickets and could it be benificial in the long run?

    Gambling winnings are taxable, but you can deduct your losses up to the amount you won for the year.  So, keeping your proof of how much you lost is a good idea.  At the end of the tax year you can throw them away, if you don't have any big wins to offset.

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      Eden Prairie, MN
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      Posted: May 15, 2009, 12:37 am - IP Logged

      So,what does that mean?  If I spend $100 USD and won $50 USD,then I get a tax deduction of $50 USD? Or do you mean a tax credit?

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        Posted: May 15, 2009, 2:03 am - IP Logged

        I read somewhere that saving losing tickets could help reduce taxes for smaller, but large enough prizes to be taxed on.  Is this true?  Because I have been saving my losing tickets. 

        Also, in Michigan, there's a raffle where you can enter just by sending 10 dollars worth of losing tickets to win a million dollars!  So, am I the only one who saves my losing tickets and could it be benificial in the long run?

        Be careful which you buy.  I bought a $20 Casino Royale Scratcher as a birthday present.  It was a loser, err, not a winner and I told my friend to enter it for that $1,000,000 drawing.  They didn't accept the $20 Casino game. :(

          RJOh's avatar - chipmunk
          mid-Ohio
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          Posted: May 15, 2009, 3:10 am - IP Logged

          So,what does that mean?  If I spend $100 USD and won $50 USD,then I get a tax deduction of $50 USD? Or do you mean a tax credit?

          You probably won't get any thing unless you itemize all your losses and they exceed the standard allowance of $4500.  I won $1500 one year and although I bought $3000 worth of lottery tickets that year my $1500 gambling lost with other losses didn't exceed the standard $4500 allowance so I ended up paying extra taxes for the $1500 increase to my taxable income.

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

            DC81's avatar - batman39
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            Posted: May 15, 2009, 10:25 am - IP Logged

            Why even report $50?? The IRS won't know anything unless it's a win of $600 or more.

            You can't predict random.

              RJOh's avatar - chipmunk
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              Posted: May 15, 2009, 5:59 pm - IP Logged

              Why even report $50?? The IRS won't know anything unless it's a win of $600 or more.

              I doubt if anyone who doesn't win enough to get  a W-G form from the state ever voluntarily reports their lottery winnings on their tax returns.

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

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                Eden Prairie, MN
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                Posted: May 16, 2009, 2:55 am - IP Logged

                For me,it is a part of the learning process of filing a tax return and to be honest.

                  diamondpalace's avatar - Untitled 2.jpg
                  Dallas, TX
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                  Posted: May 16, 2009, 2:56 am - IP Logged

                  It only makes good wallpaper...

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                    Zeta Reticuli Star System
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                    Posted: May 17, 2009, 1:14 pm - IP Logged

                    I read somewhere that saving losing tickets could help reduce taxes for smaller, but large enough prizes to be taxed on.  Is this true?  Because I have been saving my losing tickets. 

                    Also, in Michigan, there's a raffle where you can enter just by sending 10 dollars worth of losing tickets to win a million dollars!  So, am I the only one who saves my losing tickets and could it be benificial in the long run?

                    Classic47

                    As has been said here, you can deduct your losses up to your winnings.

                    In other words, you can't win $1200 and say, "Well I blew $2400 playing the lotto." No matter how much you did lose, the claimed amount can't exceed the winnings.

                    The reason for keeping losing tickets is because there are actually some people that would win something reportbale, let's say, on December 30th, and go to their nearest lotto vendor and hang around asking people for losing tickets. So when they do their taxes they have a collection of losers, all dated the same day.

                    Another thing I leanred here at LP, and I think it ws RJOh that posted this once, is losing tickets alone aren't good enough, you should also keep a log. Nothing elaborate, but at least the date of play and amount played.

                    Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

                    Lep

                    There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

                      Litebets27's avatar - power
                      Maryland
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                      Posted: May 17, 2009, 2:14 pm - IP Logged

                      I've had the pleasure (sarcasm) of being audited several years ago. The fun part of it is, several years later the State is now dripping their hands into the pot. I was told that if you are lucky enough to get audited and you had claimed a W2G form during the year that you were audited and happened to be called in to show proof of everything that you have claimed, it's nice to have a bag of those tickets with you.

                      I haven't been asked to bring in proof, but 4 years later, the fact of the audit still comes up. You never know when you will be called. It's like an intermittent toothache, annoying, aching and won't go away...yuke.

                      Feeling,  PRICELESS!!!Banana

                      Come on Jackpot!!!

                        four4me's avatar - gate1
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                        Posted: May 17, 2009, 3:44 pm - IP Logged

                        You can save all the tickets you want the only saved tickets that count are the ones you keep after you win a reportable amount over 600 bucks. Any tickets you purchased before the day you won are worthless for tax purposes.

                        Big John says. You don't hit the number. The number hits you!!!!

                                       I'm not Big John, I'm Four4me, Big John's a friend.
                          Litebets27's avatar - power
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                          Posted: May 17, 2009, 5:40 pm - IP Logged

                          You can save all the tickets you want the only saved tickets that count are the ones you keep after you win a reportable amount over 600 bucks. Any tickets you purchased before the day you won are worthless for tax purposes.

                          You are reporting your gambling losses for the year. This includes those before, during and after. At least, that is what the IRS agent reported to me.

                          Feeling,  PRICELESS!!!Banana

                          Come on Jackpot!!!

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                            Posted: May 17, 2009, 6:26 pm - IP Logged

                            I guess I won't bother saving them then (unless I want to try for the second chance drawing, but I want to find out more about it before I play).

                              four4me's avatar - gate1
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                              Posted: May 17, 2009, 7:16 pm - IP Logged

                              You are reporting your gambling losses for the year. This includes those before, during and after. At least, that is what the IRS agent reported to me.

                              Lightbets i only said what i did because my tax man told me it. The rules may have changed since then i don't know.

                              He also told me to keep them in a safe place in the event i get audited.

                              When i won 9 grand in November back in 1997 he said only the tickets i purchased after my win would count to-wards some of the estimated taxes i owed and would get a refund on.

                              I was pretty riled up because the lottery taxed me up front, then the state and feds wanted some more money at the end of the year on my win based on what i received after the lottery took their cut.

                              I am talking about doing the long form estimated taxes for homeowners not the short form and not the form professional gamblers use.

                              I firmly believe lottery winnings should be tax free. Since the feds and the state didn't contribute any money to me to play the lottery why should they collect.

                              Big John says. You don't hit the number. The number hits you!!!!

                                             I'm not Big John, I'm Four4me, Big John's a friend.