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Deducting lottery losses

Topic closed. 21 replies. Last post 6 years ago by inittowin.

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B$Rizzle's avatar - a4leds
The Ville, FL
United States
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August 19, 2010
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Posted: April 7, 2011, 8:46 am - IP Logged

You can only write off gambling losses if you are claiming a win. You also can't exceed the total amount of the win you are claiming. I am sure over the past year I probably played more than the $6,300 I claimed. That is why we all need to hit the cash 3 str8 for $50 so we can get our money from the store a little at a time without paying taxes.

I think about that alot actually...Say on Cash 3 we put down $1.00 straight and play the same # 20x for example. That would net $10,000 and if you hit up different stores to cash them in ($500 each store), there would be no taxes. Is that legal?

    myeyes2020's avatar - phant
    toledo, ohio
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    March 31, 2011
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    Posted: April 7, 2011, 9:22 am - IP Logged

    YES  it 's legal  it may take you a while to get the tickets cashed  but if you winning like that the task is well worth  it

    keep campaigning you will get elected

      James1's avatar - 5599078405 12a562a9e7_t.jpg
      Florida
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      January 14, 2011
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      Posted: April 7, 2011, 2:28 pm - IP Logged

      I think some guy got busted when he hit Cash 3 50x straight one night. He went around town cashing them with an accomplice but got cought and faced legal actions. I read the story on here somewhere.

      2014 Highest Winner: $500

        B$Rizzle's avatar - a4leds
        The Ville, FL
        United States
        Member #95879
        August 19, 2010
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        Posted: April 7, 2011, 9:11 pm - IP Logged

        I think some guy got busted when he hit Cash 3 50x straight one night. He went around town cashing them with an accomplice but got cought and faced legal actions. I read the story on here somewhere.

        Thats why I was questioning it. Technically they do not withhold taxes when a prize is less than $599. So if you win more than that on a single game/drawing, then technically it would be more than $599 (broken up in multiple wins of $500)....So Thats why I was wondering if it was actually legal or not. Im sure it would not be a big deal if you won $500 a couple times and cashed them in.But if you won $500 x 20 + times on the same drawing it may raise some eyebrows.

         

        I know some states offer up to $5 bux on a cash 3 playslip single line, so if you played $5 bux on a specific # it would be $2,500 making the person have to file a claim at the lottery office. I always wondered, if someone is going to play the same # multiple times, why dont they just play multiple play slips so its separate wins and they can cash them at any retailer? There has to be some stipulation on this.

          Rowen's avatar - animal eel.jpg
          Illinois
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          November 3, 2009
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          Posted: April 9, 2011, 11:19 pm - IP Logged

          Thats why I was questioning it. Technically they do not withhold taxes when a prize is less than $599. So if you win more than that on a single game/drawing, then technically it would be more than $599 (broken up in multiple wins of $500)....So Thats why I was wondering if it was actually legal or not. Im sure it would not be a big deal if you won $500 a couple times and cashed them in.But if you won $500 x 20 + times on the same drawing it may raise some eyebrows.

           

          I know some states offer up to $5 bux on a cash 3 playslip single line, so if you played $5 bux on a specific # it would be $2,500 making the person have to file a claim at the lottery office. I always wondered, if someone is going to play the same # multiple times, why dont they just play multiple play slips so its separate wins and they can cash them at any retailer? There has to be some stipulation on this.

          I think that case involve pick 4 and those prizes have to be reported. It is more tricky with pick 3. There are camera everywhere and they know how many winning tickers are sold and where. They may flag you when you try to claim in store to keep you from cashing in so you have to go to headquarters and fill out paperworks. It is a nice problem to have though.

            James1's avatar - 5599078405 12a562a9e7_t.jpg
            Florida
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            January 14, 2011
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            Posted: April 14, 2011, 12:51 pm - IP Logged

            Can anyone answer this.

            Does one even need to save losing lotto tickets ? 

            Say if you get a $10K winner and the feds take 25% , do you get that 25% back if you write off $10K in losses ? Do you have to show them the losing tics as proof ?

            2014 Highest Winner: $500

              inittowin's avatar - 039ee315cfea4c12c8f5
              If you don't like it, spit it out!
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              May 23, 2004
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              Posted: April 16, 2011, 8:29 pm - IP Logged

              Can anyone answer this.

              Does one even need to save losing lotto tickets ? 

              Say if you get a $10K winner and the feds take 25% , do you get that 25% back if you write off $10K in losses ? Do you have to show them the losing tics as proof ?

              Hi James

              This link should give you the answers that you need.      http://www.irs.gov/taxtopics/tc419.html

              One line from the text is very true! It says:

              It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses.

               I know of someone who had well over the amount of their winnings covered by losing tickets. But since they

              did not keep a daily log of wins and losses, our friends at the IRS, did not allow any deductions and they had to pay taxes on their entire winnings.