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Can I get some help with online lottery tax info

Topic closed. 74 replies. Last post 7 years ago by tiggs95.

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KidZero's avatar - chi
SC
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October 11, 2009
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Posted: October 11, 2009, 10:28 am - IP Logged

If anyone here plays online could you maybe give me some advice on how to pay taxes if i win online lottery, such as pick 3

I may still be a kid, but a very smart kid...

    Raven62's avatar - binary
    New Jersey
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    Posted: October 11, 2009, 10:43 am - IP Logged

    If anyone here plays online could you maybe give me some advice on how to pay taxes if i win online lottery, such as pick 3

    Quarterly Estimated Tax (Form 1040-ES)

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

      tiggs95's avatar - Lottery-036.jpg

      United States
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      Posted: October 11, 2009, 10:52 am - IP Logged

      Why would you have to pay taxes on pick 3?...

        KidZero's avatar - chi
        SC
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        Posted: October 11, 2009, 11:14 am - IP Logged

        Should I only file if I accumulate more than 1,000 dollars?

        I may still be a kid, but a very smart kid...

          wpb's avatar - DiscoBallGlowing
          Charlotte North Carolina
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          Posted: October 11, 2009, 11:23 am - IP Logged

          Should I only file if I accumulate more than 1,000 dollars?

          If you are speaking about playing online and playing with a site outside the USA, you do not pay USA taxes.  That's why it is illegal in the USA.  They can not figure out a way to make citzen pay taxes, so they tried to stop us from playing.

          wpb

            tiggs95's avatar - Lottery-036.jpg

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            Posted: October 11, 2009, 11:27 am - IP Logged

            You should never have to pay taxes on pick 3..Only way you need to pay taxes is if a 1.00 ticket is more then 600.00..If you say have 100 1.00 pick 3 and it pays 599.00 for each ticket you can cash them all at once and not have to pay taxes..Like I just said if a 1.00 ticket is more then 599.00 then you have to file taxes..Call the lottery outlet and ask them and they will tell you the same thing..

              inittowin's avatar - 039ee315cfea4c12c8f5
              If you don't like it, spit it out!
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              Posted: October 11, 2009, 12:04 pm - IP Logged

              You should never have to pay taxes on pick 3..Only way you need to pay taxes is if a 1.00 ticket is more then 600.00..If you say have 100 1.00 pick 3 and it pays 599.00 for each ticket you can cash them all at once and not have to pay taxes..Like I just said if a 1.00 ticket is more then 599.00 then you have to file taxes..Call the lottery outlet and ask them and they will tell you the same thing..

              Correction.

              ANY money that is acquired is taxable.

              Such as lottery winnings or even someone handing you $20. Usually with any winnings under $600, IRS doesn't require the payer to create paper work for taxes at that time and leaves it to the person receiving it, to add it to their taxes when they prepare their annual tax return.

              IRS will look at any money received as income and is taxable (except insurance payouts). It should be added to any other income that you have (earned or unearned income).

              That is the tax law...whether you do that or not, is your decision.

                tiggs95's avatar - Lottery-036.jpg

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                Posted: October 11, 2009, 12:26 pm - IP Logged

                If like when I cashed pick 3 for 1,200.00 dollars all at once with 3 tickets I'm supossed to file that even if they diden't ask for my SS nunmber..Yeah I'm going to tell them I won 400.00 on a 1.00 ticket even if they say I DON'T HAVE TO..duuuuh

                  LANTERN's avatar - kilroy 28_173_reasonably_small.jpg
                  Tx
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                  Posted: October 12, 2009, 2:14 am - IP Logged

                  If anyone here plays online could you maybe give me some advice on how to pay taxes if i win online lottery, such as pick 3

                  Not only because it is the law, but since you do play online, there might even be more of a risk, better find a way to add any such income to all the other income and pay the taxes if any is owed, if you win way too much, maybe better to pay some or all of the tax during the year as somebody said.

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                    Posted: October 12, 2009, 9:00 am - IP Logged

                    Correction.

                    ANY money that is acquired is taxable.

                    Such as lottery winnings or even someone handing you $20. Usually with any winnings under $600, IRS doesn't require the payer to create paper work for taxes at that time and leaves it to the person receiving it, to add it to their taxes when they prepare their annual tax return.

                    IRS will look at any money received as income and is taxable (except insurance payouts). It should be added to any other income that you have (earned or unearned income).

                    That is the tax law...whether you do that or not, is your decision.

                    The reason the IRS code doesn't tax gambling winnings under $600 is because the millions of lesser amount scratch-offs and other winners. Do you really believe there would be any lottery, casino slot machines, or pari-mutual race betting if every time someone won $2 they had to record the winnings or fill out a tax form to get their winnings? The paperwork would be a nightmare.

                    The tax codes allow us to deduct gambling losses and it applies to winnings under $600 too. If you have ever done any casino gaming, you should know over time the amounts of accumulative wins and losses are staggering. Most casinos have coin less slot machines so the play is much faster and even if you put just $20 into a Quarter slot machine, it's possible to play for an hour or more without every putting in more money or cashing. It wouldn't be much fun if the IRS required us to record every time we hit 3 mixed bars and "won" $3.75 and even less fun after we added it up and "won" a couple hundred dollars, reported it, but still lost the $20 we put into the machine.

                    I found a penny on the ground yesterday and I'd better report it next year because according to you, the "IRS will look at any money received as income".

                      lovinwinning's avatar - Lottery-008.jpg
                      Hiddenite , NC
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                      Posted: October 13, 2009, 9:11 am - IP Logged

                      The reason the IRS code doesn't tax gambling winnings under $600 is because the millions of lesser amount scratch-offs and other winners. Do you really believe there would be any lottery, casino slot machines, or pari-mutual race betting if every time someone won $2 they had to record the winnings or fill out a tax form to get their winnings? The paperwork would be a nightmare.

                      The tax codes allow us to deduct gambling losses and it applies to winnings under $600 too. If you have ever done any casino gaming, you should know over time the amounts of accumulative wins and losses are staggering. Most casinos have coin less slot machines so the play is much faster and even if you put just $20 into a Quarter slot machine, it's possible to play for an hour or more without every putting in more money or cashing. It wouldn't be much fun if the IRS required us to record every time we hit 3 mixed bars and "won" $3.75 and even less fun after we added it up and "won" a couple hundred dollars, reported it, but still lost the $20 we put into the machine.

                      I found a penny on the ground yesterday and I'd better report it next year because according to you, the "IRS will look at any money received as income".

                      Never thought of it that way . Wink

                      Happy Thanksgiving everyone ! May we all have something to be thankful for !! Big Smile

                        Jack-C's avatar - us
                        San Diego, CA
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                        Posted: October 13, 2009, 9:19 am - IP Logged

                        The reason the IRS code doesn't tax gambling winnings under $600 is because the millions of lesser amount scratch-offs and other winners. Do you really believe there would be any lottery, casino slot machines, or pari-mutual race betting if every time someone won $2 they had to record the winnings or fill out a tax form to get their winnings? The paperwork would be a nightmare.

                        The tax codes allow us to deduct gambling losses and it applies to winnings under $600 too. If you have ever done any casino gaming, you should know over time the amounts of accumulative wins and losses are staggering. Most casinos have coin less slot machines so the play is much faster and even if you put just $20 into a Quarter slot machine, it's possible to play for an hour or more without every putting in more money or cashing. It wouldn't be much fun if the IRS required us to record every time we hit 3 mixed bars and "won" $3.75 and even less fun after we added it up and "won" a couple hundred dollars, reported it, but still lost the $20 we put into the machine.

                        I found a penny on the ground yesterday and I'd better report it next year because according to you, the "IRS will look at any money received as income".

                        You will have to show me where the IRS says that they don't tax gambling winnings under $600.  They don't require the payor to withhold taxes, but they still require you to claim it on your tax return.  You can then deduct gambling losses (proveable) up to the amount that you won.

                          tiggs95's avatar - Lottery-036.jpg

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                          Posted: October 13, 2009, 9:24 am - IP Logged

                          Let's see now..You go to the race track and play a trifecta and it pays 600.00 for a 2.00 tri you have to pay taxes on it but they tell you that if you play a 1.00 tri twice for 2.00 on the same numbers it pays you 300.00 for the 1.00 tri and they tell you that way you don't have to pay taxes..Makes sense to me?

                            Raven62's avatar - binary
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                            Posted: October 13, 2009, 10:31 am - IP Logged

                            An estimated 30 percent to 40 percent of taxpayers cheat on their returns.

                            An estimated 60 percent to 70 percent of taxpayers pay higher taxes as a result of other taxpayers cheating on their returns.

                            A key reason people evade taxes is that it is easy to rationalize.

                            Typical justifications include the idea that everyone does it, the system is unfair so the perpetrator is righting a wrong and the government just squanders the money anyway.

                            The biggest loss of tax revenue comes from people under-reporting their income (ie: small lottery wins, tips, etc.).

                            If you pay your taxes, why shouldn't the tax cheats who readily accept Government Services...

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

                              Jack-C's avatar - us
                              San Diego, CA
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                              Posted: October 13, 2009, 5:13 pm - IP Logged

                              Let's see now..You go to the race track and play a trifecta and it pays 600.00 for a 2.00 tri you have to pay taxes on it but they tell you that if you play a 1.00 tri twice for 2.00 on the same numbers it pays you 300.00 for the 1.00 tri and they tell you that way you don't have to pay taxes..Makes sense to me?

                              They will NOT tell you that you don't have to pay taxes on the winnings.  But, they will not ask you to fill out paperwork nor will they withhold 20% Federal Tax.