Welcome Guest
Log In | Register )
You last visited December 3, 2016, 4:32 am
All times shown are
Eastern Time (GMT-5:00)

paying taxes

Topic closed. 12 replies. Last post 5 years ago by haymaker.

Page 1 of 1
PrintE-mailLink
Avatar

United States
Member #3958
March 7, 2004
74 Posts
Offline
Posted: July 6, 2011, 10:02 am - IP Logged

how much can you win playing the lottery before you have to pay taxes on ? 

hope this question is ok

and on the online games is it the same taxes

have a winning dayHyper

    Raven62's avatar - binary
    New Jersey
    United States
    Member #17843
    June 28, 2005
    49618 Posts
    Offline
    Posted: July 6, 2011, 10:15 am - IP Logged

    how much can you win playing the lottery before you have to pay taxes on ? 

    hope this question is ok

    and on the online games is it the same taxes

    You Pay Tax for the Year: On Every Dollar Won Above the Amount You Lost!

    If you Won $500 and Lost $600: No Tax!

    If you Won $600 and Lost $500: $100 is Taxable!

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


      Canada
      Member #68663
      December 27, 2008
      260 Posts
      Offline
      Posted: July 6, 2011, 10:17 am - IP Logged

      how much can you win playing the lottery before you have to pay taxes on ? 

      hope this question is ok

      and on the online games is it the same taxes

      You have to declare all income, including all gambling wins on your US tax return. How much tax you pay will depend upon your total income and deductions. You can declare gambling loses as a deduction, but any gambling loses that exceed your gambling wins do not count towards reducing other income.

      Hope this helps.

        Avatar
        Kentucky
        United States
        Member #32652
        February 14, 2006
        7295 Posts
        Offline
        Posted: July 6, 2011, 1:47 pm - IP Logged

        how much can you win playing the lottery before you have to pay taxes on ? 

        hope this question is ok

        and on the online games is it the same taxes

        I thought $599 was the limit until I moved to Kentucky. The pick-3 pays $600 for a straight and you're not issued a W-2. I guess the reason is they deduct the $1 wager they kept making the win $599.

        There are pros and cons on declaring multiple winnings on one hit when each hit is under $600, the total it over $600, and no W-2 is issued. I guess it depends on if you sign the back of the tickets because without names it would look like multiple winners to the Lottery and the IRS. 

        "and on the online games is it the same taxes"

        The horse racing betting sites have the same rules they use at race tracks. They ask for a SS number when opening an account so if you win over the taxable limit, they will report it to the IRS and send you a W-2.

          Avatar
          Kentucky
          United States
          Member #32652
          February 14, 2006
          7295 Posts
          Offline
          Posted: July 6, 2011, 1:52 pm - IP Logged

          You have to declare all income, including all gambling wins on your US tax return. How much tax you pay will depend upon your total income and deductions. You can declare gambling loses as a deduction, but any gambling loses that exceed your gambling wins do not count towards reducing other income.

          Hope this helps.

          "You have to declare all income, including all gambling wins on your US tax return."

          Only if you're a professional gambler. Casual gamblers like the majority of us don't have to declare a $7 or $10 win as income.

            haymaker's avatar - Lottery-012.jpg
            Egg Harbor twp.south Jersey shore
            United States
            Member #112968
            June 29, 2011
            3850 Posts
            Offline
            Posted: July 6, 2011, 2:01 pm - IP Logged

            I thought $599 was the limit until I moved to Kentucky. The pick-3 pays $600 for a straight and you're not issued a W-2. I guess the reason is they deduct the $1 wager they kept making the win $599.

            There are pros and cons on declaring multiple winnings on one hit when each hit is under $600, the total it over $600, and no W-2 is issued. I guess it depends on if you sign the back of the tickets because without names it would look like multiple winners to the Lottery and the IRS. 

            "and on the online games is it the same taxes"

            The horse racing betting sites have the same rules they use at race tracks. They ask for a SS number when opening an account so if you win over the taxable limit, they will report it to the IRS and send you a W-2.

            in jersey we no longer have to sign the back of ticket on small wins.i guess they dropped the rule cause they never asked for i.d. and nobody took it seriously and would sign the name of someone famous,like george washinton,bill clinton etc.

            Extraordinary Popular Delusions & the Madness of Crowds    -- Charles Mackay  LL.D.

              redhot7's avatar - SetforLifeLogo
              California
              United States
              Member #112364
              June 17, 2011
              661 Posts
              Offline
              Posted: July 6, 2011, 3:14 pm - IP Logged

              how much can you win playing the lottery before you have to pay taxes on ? 

              hope this question is ok

              and on the online games is it the same taxes

              25% flat Fed Tax. No state income taxes for lottery winning for the state of California. Your state lottery may withhold taxes immediately and cut the amount when issuing the check. If you owe back taxes, child support, the amount you owe to the government may be deducted from your winning ticket too.

                B$Rizzle's avatar - a4leds
                The Ville, FL
                United States
                Member #95879
                August 19, 2010
                1708 Posts
                Offline
                Posted: July 6, 2011, 3:31 pm - IP Logged

                Anything over $599 and up to $250,000 here in FL, has to be claimed at the district office. Anything over $599, the district office will provide a W2-G form for tax reporting.

                 

                Also in FL, anything under $5,000 is not deducted at the time of claiming. So, say you win $5,000, the district office will provide a check for that amount = $5,000.

                If you win $10,000 for example, the district office will give you a  check for $7,500 since FL witholds 25% on winnings, with no state tax.

                 

                 

                You will have to pay taxes once you file your tax return the next year on anything over $599.

                  haymaker's avatar - Lottery-012.jpg
                  Egg Harbor twp.south Jersey shore
                  United States
                  Member #112968
                  June 29, 2011
                  3850 Posts
                  Offline
                  Posted: July 6, 2011, 3:31 pm - IP Logged

                  25% flat Fed Tax. No state income taxes for lottery winning for the state of California. Your state lottery may withhold taxes immediately and cut the amount when issuing the check. If you owe back taxes, child support, the amount you owe to the government may be deducted from your winning ticket too.

                  i believe 25% is just the w/holding you could end up owing more when you file the next april 15.Thinking of...

                  Extraordinary Popular Delusions & the Madness of Crowds    -- Charles Mackay  LL.D.

                    B$Rizzle's avatar - a4leds
                    The Ville, FL
                    United States
                    Member #95879
                    August 19, 2010
                    1708 Posts
                    Offline
                    Posted: July 6, 2011, 3:33 pm - IP Logged

                    i believe 25% is just the w/holding you could end up owing more when you file the next april 15.Thinking of...

                    Very true

                      redhot7's avatar - SetforLifeLogo
                      California
                      United States
                      Member #112364
                      June 17, 2011
                      661 Posts
                      Offline
                      Posted: July 6, 2011, 3:35 pm - IP Logged

                      Very true

                      I don't know but this is what they say, extracted from California Winner Handbook:

                      Lottery prizes are exempt from California state and local personal income taxes. However, the Internal Revenue Service (IRS) requires the California Lottery to withhold taxes from prizes over $5,000 for U.S. citizens and resident aliens who provide social security numbers on the Lottery Claim Form. The IRS also requires the Lottery to withhold additional taxes from all prizes of $600 to $5,000 from U.S. citizens and resident aliens who do not provide a social security number. Claimants who do not mark the citizenship status on the Lottery Claim Form will have 30% withheld from all prizes over one dollar. Winners paid in annual installments automatically have taxes withheld from each annual payment.

                      The withholding rate for federal income tax is based, in part, on your resident status. The Lottery is now required to withhold federal taxes of 25% for U.S. citizens and resident aliens providing a social security number, and 28% for U.S. citizens and resident aliens not providing a social security number. Federal tax rates are subject to change.

                      There is no change to the tax-withholding rate of 30% for non-U.S. citizens, non-resident aliens or if citizenship status has not been provided to the Lottery. Tax withholding amounts are not generally designed to meet a winner’s total tax liability. There may be an additional tax liability depending on a winner’s total financial situation. Contact a professional tax adviser to help you determine your total tax liability. The Internal Revenue Service (IRS) has prepared the “State Lottery Winners” brochure to provide guidance on the federal income tax responsibilities.
                      For a copy of this brochure, please contact the IRS at 1 (800) 829-1040.

                      As a California Lottery winner, an IRS W2 G Form will be mailed to you by January 31 for the previous tax year. This form reports the amount of your Lottery winnings and must be filed with your federal income tax return. You should also keep a copy for your records. Please remember to notify the Lottery’s Tax Unit or Investments Office if you have changed your address.

                        haymaker's avatar - Lottery-012.jpg
                        Egg Harbor twp.south Jersey shore
                        United States
                        Member #112968
                        June 29, 2011
                        3850 Posts
                        Offline
                        Posted: July 6, 2011, 3:38 pm - IP Logged

                        Anything over $599 and up to $250,000 here in FL, has to be claimed at the district office. Anything over $599, the district office will provide a W2-G form for tax reporting.

                         

                        Also in FL, anything under $5,000 is not deducted at the time of claiming. So, say you win $5,000, the district office will provide a check for that amount = $5,000.

                        If you win $10,000 for example, the district office will give you a  check for $7,500 since FL witholds 25% on winnings, with no state tax.

                         

                         

                        You will have to pay taxes once you file your tax return the next year on anything over $599.

                        b$rizzle, why does the state w/hold, if theres no state tax,wheres the $ go ?

                        Extraordinary Popular Delusions & the Madness of Crowds    -- Charles Mackay  LL.D.

                          haymaker's avatar - Lottery-012.jpg
                          Egg Harbor twp.south Jersey shore
                          United States
                          Member #112968
                          June 29, 2011
                          3850 Posts
                          Offline
                          Posted: July 6, 2011, 3:41 pm - IP Logged

                          in 3rd paragraph "there may be additional tax liability"

                          Extraordinary Popular Delusions & the Madness of Crowds    -- Charles Mackay  LL.D.