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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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tiggs95's avatar - Lottery-036.jpg

United States
Member #47420
November 4, 2006
3930 Posts
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Posted: October 21, 2009, 11:25 am - IP Logged

Stack47..THANK YOU..But I'll bet someone will come back and tell you your wrong..If the machine says you have to pay taxes you pay taxes as simple as that..I hit a 719.00 tri at the off track betting place I go to and when they cashed my ticket it said I had to pay tax on it and I did..They would not cash the ticket unless I made out the SS form..I think some of these people on this site try to be smart and instead they show they are not..Thank you for explaining it in a simple manner and hope they can understand what you said..I did..

    bigdaddy's avatar - aviator2 1.jpg
    BETWEEN OAKRIDGE AND WRIGHT-PATTERSON AFB
    United States
    Member #1647
    June 10, 2003
    2213 Posts
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    Posted: October 21, 2009, 11:34 am - IP Logged

    if you win under $600.00 you don't pay taxes and you don't sign your ticket. taxfree no record which is why i play pick 4 boxed and multiple plays keeps it all taxfree,the only time i play str8 plays is quads,when they come in key positions in my method then i hit it hard and pay taxes on those winnings..

    Relax,Bigdaddy has your number!!!!!

    Pi is the way...

    turning $30 or less into thousands everyday!!

    here we go steelers ..here we go---------stairway to seven 

    TIME FOR THE LOMBARDI TROPHY TO  COME  HOME..

      Avatar
      Kentucky
      United States
      Member #32652
      February 14, 2006
      7302 Posts
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      Posted: October 21, 2009, 12:00 pm - IP Logged

      trueritic..Each ticket was 400.00..You do not have to pay any taxes on a 400.00 ticket<<----Do you understand this?...I could have cashed each ticket one at a time if that would have made you feel better..I wish Todd would read this and try to explain it to you..I can't get thru..Bang Bang Bang<<<-----Banging my head agaist the wall..

      The confusion here seems to be in aggregated value.

      I'm assuming some people have never cashed a $400 ticket and/or a ticket over $599 or they would know the difference because it's really simple. You handed the clerk three $400 winning $1 tickets, the clerk scans each ticket and the screen says "payout $400" with no questions asked. If the value of the ticket is over $599, the clerk would be instructed to fill out the appropriate form.

        sunjune6's avatar - Lottery-010.jpg
        Atlanta,GA
        United States
        Member #79429
        September 1, 2009
        103 Posts
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        Posted: October 21, 2009, 12:49 pm - IP Logged

        sunjune6..WAKE UP...If the track reports any ticket they cash for me and I have to pay taxes on that ticket that means I have made out the SS form..I have to be the one at the track to file the form for the IRS they don't know my ss number name or address UNLESS I TELL THEM...Man WAKE UP..How do you think the IRS get's my name..I MAKE OUT THE FORM ..Man oh man..Excuse me while I bang my head against the wall..They MAKE me make out the SS form before I can get my money if it pays 600.00 or more..Read your IRS laws...

        Iam awake. I don't know what you are addressing or what you think I have said so I will say again: IF YOU HAVE A WINNING TICKET OVER $599 AT THE TRACK I GO TO THE CLERK OR CASHIER WILL ASK FOR YOUR  ID AND YOUR SS CARD.  THEY WILL FILL OUT THE FORM AND YOU WILL SIGN THE FORM BEFORE THEY GIVE YOU ANY MONEY. (I have no idea what will happen if you don't have ID or SS card)

        The only time you can utilize any of your winnings before you sign for it is if you tell the clerk that you wish to place a bet in another race. At that time you give your bet and get your ticket for the other race. The clerk  will deduct the cost of the bet from your net winnings. Now he/she will finish filling out the form for your win over $599. You sign the form, and get your winnings minus the amount for the other bet you made. You will get 3 copies of the 1099 you just signed.

        That is what happens at the track I go to. I go a lot and my wife think I go too much.

        I do hope you understand; I tried to explain as simply  as I could. If this is not clear I don't know how to help, sorry.

        GOOD LUCK

        If you think you can or if you think you can't you are right!

        Today could be the day!

          truecritic's avatar - PirateTreasure
          Michigan
          United States
          Member #22395
          September 24, 2005
          1583 Posts
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          Posted: October 21, 2009, 1:38 pm - IP Logged

          trueritic..Each ticket was 400.00..You do not have to pay any taxes on a 400.00 ticket<<----Do you understand this?...I could have cashed each ticket one at a time if that would have made you feel better..I wish Todd would read this and try to explain it to you..I can't get thru..Bang Bang Bang<<<-----Banging my head agaist the wall..

          It DOES NOT matter if there is paperwork or not.  I fully understand what you are saying.  I fully understand you would pay taxes if you had to fill out a tax form to get your winnings.

          What you fail to understand is you are legally bound to fill out your income tax form and show that $400 that you won.  If you have $400 in losing tickets, you break even - you don't pay tax.  But you have to report it.  That burden is placed on you when you receive cash.

          You probably don't think you are legally obligated to report being paid "under the table" in cash for work you do.  Wrong.   The burden is on you to legally report it on your tax form.

          "I can't get thru..Bang Bang Bang<<<-----Banging my head agaist the wall.."

          You can't get thru because you are wrong.  How about if you rob a bank?  How about if you only get $599 from the bank? Income and report it.  How about you throw a tupperware party and you make $200?  Income and report it.  How about you find $400?  Income and report it.

          In real life most people wouldn't report money from those situations...but then they cannot post that they have a tax preparer and brag... "cause in all our years we have never cheated.."    You have cheated by not reporting the three $400 tickets and probably more based on your way of thinking, as you posted here.

          Here, don't believe me?  Read.  Two pages, read both.

          Bribes, thefts and other taxable income - MSN Money:
          http://articles.moneycentral.msn.com/Taxes/Advice/BribesTheftsAndOtherTaxableIncome.aspx?page=1

            Jack-C's avatar - us
            San Diego, CA
            United States
            Member #61467
            May 24, 2008
            28146 Posts
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            Posted: October 21, 2009, 1:42 pm - IP Logged

            It DOES NOT matter if there is paperwork or not.  I fully understand what you are saying.  I fully understand you would pay taxes if you had to fill out a tax form to get your winnings.

            What you fail to understand is you are legally bound to fill out your income tax form and show that $400 that you won.  If you have $400 in losing tickets, you break even - you don't pay tax.  But you have to report it.  That burden is placed on you when you receive cash.

            You probably don't think you are legally obligated to report being paid "under the table" in cash for work you do.  Wrong.   The burden is on you to legally report it on your tax form.

            "I can't get thru..Bang Bang Bang<<<-----Banging my head agaist the wall.."

            You can't get thru because you are wrong.  How about if you rob a bank?  How about if you only get $599 from the bank? Income and report it.  How about you throw a tupperware party and you make $200?  Income and report it.  How about you find $400?  Income and report it.

            In real life most people wouldn't report money from those situations...but then they cannot post that they have a tax preparer and brag... "cause in all our years we have never cheated.."    You have cheated by not reporting the three $400 tickets and probably more based on your way of thinking, as you posted here.

            Here, don't believe me?  Read.  Two pages, read both.

            Bribes, thefts and other taxable income - MSN Money:
            http://articles.moneycentral.msn.com/Taxes/Advice/BribesTheftsAndOtherTaxableIncome.aspx?page=1

            I Agree!I Agree!I Agree!

              Jack-C's avatar - us
              San Diego, CA
              United States
              Member #61467
              May 24, 2008
              28146 Posts
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              Posted: October 21, 2009, 2:04 pm - IP Logged

              IRS Form 1040 Line 21 Other Income

              One of the things to be reported on this line is:

              "Gambling winnings, including lotteries, raffles,
              a lump-sum payment from the sale of a right to receive
              future lottery payments, etc."

              There is no mention of a dollar amount.  So, legally,
              you are required to report all of your gambling winnings.

                tiggs95's avatar - Lottery-036.jpg

                United States
                Member #47420
                November 4, 2006
                3930 Posts
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                Posted: October 21, 2009, 3:37 pm - IP Logged

                To the senile posters on this board if you ever buy a 1.00 cash 3 and hit 400.00 make sure you ask to  make out a SS form so you can pay taxes on..To the ones who replyed to me you did not say what you said in your last post..You said I had to pay taxes on everything I win regardless of what it paid..Goodbye and goodluck!!..I'm out!..Do you guys live in a rest home?

                  Jordans121's avatar - nw bookeep.jpg

                  United States
                  Member #69169
                  January 5, 2009
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                  Posted: October 21, 2009, 3:41 pm - IP Logged

                  Here in Illinois you dont have to pay taxes on any lottery prize under 1200 dollars

                  "Many Strategies|One Game"

                    truecritic's avatar - PirateTreasure
                    Michigan
                    United States
                    Member #22395
                    September 24, 2005
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                    Posted: October 21, 2009, 4:33 pm - IP Logged

                    Here in Illinois you dont have to pay taxes on any lottery prize under 1200 dollars

                    Illinois seceded from the United States?  Must have missed it on the news.

                    Of course you have to report ANY LOTTERY WINNINGS to the IRS!  What do you think the article that I linked was saying?   You can probably get away with not paying but it isn't legal!

                      Avatar
                      Georgia
                      United States
                      Member #79361
                      August 30, 2009
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                      Posted: October 21, 2009, 5:39 pm - IP Logged

                      Why would that be on the 1040 rather than a Schedule C?

                       

                      What if people gamble for a living as a business?

                        truecritic's avatar - PirateTreasure
                        Michigan
                        United States
                        Member #22395
                        September 24, 2005
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                        Posted: October 21, 2009, 7:57 pm - IP Logged

                        Some explanations of questions that came up in this thread.

                        Want to File Your Taxes as a Professional Gambler? - CardPlayer.com:
                        http://www.cardplayer.com/cardplayer-magazines/59-16-7/articles/13166-want-to-file-your-taxes-as-a-professional-gambler

                        Am I a Professional Gambler?:
                        http://traderstatus.com/professionalgamblerstatus.professionalgambler.htm

                        Professional Gambler Status:
                        http://www.professionalgamblerstatus.com/

                        What Is a Gambling Session? Federal Income Tax aspects.:
                        http://www.gambling-law-us.com/Articles-Notes/Gambling-Session.htm

                          Avatar
                          NY
                          United States
                          Member #23835
                          October 16, 2005
                          3474 Posts
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                          Posted: October 22, 2009, 2:20 am - IP Logged

                          To the senile posters on this board if you ever buy a 1.00 cash 3 and hit 400.00 make sure you ask to  make out a SS form so you can pay taxes on..To the ones who replyed to me you did not say what you said in your last post..You said I had to pay taxes on everything I win regardless of what it paid..Goodbye and goodluck!!..I'm out!..Do you guys live in a rest home?

                          I'm pretty sure that most people undertand exactly what you're saying, but in case anybody is unclear, I'll spell it out.  You undertstand the legal requirements, but you're a thief who cheats on his taxes because the absence of a paper trail makes you think you can get away with it. Is that about right?

                            rdgrnr's avatar - walt
                            Way back up in them dadgum hills, son!
                            United States
                            Member #73904
                            April 28, 2009
                            14903 Posts
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                            Posted: October 22, 2009, 2:37 am - IP Logged

                            It DOES NOT matter if there is paperwork or not.  I fully understand what you are saying.  I fully understand you would pay taxes if you had to fill out a tax form to get your winnings.

                            What you fail to understand is you are legally bound to fill out your income tax form and show that $400 that you won.  If you have $400 in losing tickets, you break even - you don't pay tax.  But you have to report it.  That burden is placed on you when you receive cash.

                            You probably don't think you are legally obligated to report being paid "under the table" in cash for work you do.  Wrong.   The burden is on you to legally report it on your tax form.

                            "I can't get thru..Bang Bang Bang<<<-----Banging my head agaist the wall.."

                            You can't get thru because you are wrong.  How about if you rob a bank?  How about if you only get $599 from the bank? Income and report it.  How about you throw a tupperware party and you make $200?  Income and report it.  How about you find $400?  Income and report it.

                            In real life most people wouldn't report money from those situations...but then they cannot post that they have a tax preparer and brag... "cause in all our years we have never cheated.."    You have cheated by not reporting the three $400 tickets and probably more based on your way of thinking, as you posted here.

                            Here, don't believe me?  Read.  Two pages, read both.

                            Bribes, thefts and other taxable income - MSN Money:
                            http://articles.moneycentral.msn.com/Taxes/Advice/BribesTheftsAndOtherTaxableIncome.aspx?page=1

                            I don't think it's fair that you have report income from bank robberies.

                            The IRS is out of control.

                            I'm calling my Congressman.


                                                                         
                                                 
                                                                     

                             

                             

                             

                             

                                                                                                                               

                            "The only thing necessary for evil to triumph is for good men to do nothing"

                                                                                                                        --Edmund Burke

                             

                             

                              truecritic's avatar - PirateTreasure
                              Michigan
                              United States
                              Member #22395
                              September 24, 2005
                              1583 Posts
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                              Posted: October 22, 2009, 5:11 am - IP Logged

                              I don't think it's fair that you have report income from bank robberies.

                              The IRS is out of control.

                              I'm calling my Congressman.

                              I Agree!