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Question about lottery groups

Topic closed. 5 replies. Last post 5 years ago by tiggs95.

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Artemis's avatar - Alice
New England
United States
Member #100508
November 13, 2010
96 Posts
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Posted: August 2, 2011, 1:41 am - IP Logged

I play PB and MM every week. If I hit the big one, I'm going to split it into 8 groups, so we can all claim it together (mostly family). My question is, can there be a group within a group? 

Is that allowed, and if so, how would it be handled/taxed?

Thank you :-)

    guesser's avatar - Lottery-017.jpg

    United States
    Member #41383
    June 16, 2006
    1969 Posts
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    Posted: August 2, 2011, 2:24 am - IP Logged

    You mean eight different checks?  You can do that.

    As far as 'group within a group', you are making it more complicated than it needs to be, and all you will do is cause trouble ('How come I got less than so-and-so?'). You don't need the trouble, TRUST ME, and you WILL have trouble ('Why did you leave me out?').

    Just do your eight groups, and let each group do what they want with it, or you simply make more groups from the eight, have ten or twelve, or whatever.

    As far as taxes go, everyone is going to be taxed at the same rate, it won't matter. Count on at least 45% in taxes.

    Eight folks in Nebraska split 380 Million, you know how much each one got?  About 17 million. Yep - they paid about 244 million in taxes.

    I hope you win a really big one.

      dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
      Oklahoma
      United States
      Member #82391
      November 12, 2009
      6290 Posts
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      Posted: August 2, 2011, 1:51 pm - IP Logged

      You mean eight different checks?  You can do that.

      As far as 'group within a group', you are making it more complicated than it needs to be, and all you will do is cause trouble ('How come I got less than so-and-so?'). You don't need the trouble, TRUST ME, and you WILL have trouble ('Why did you leave me out?').

      Just do your eight groups, and let each group do what they want with it, or you simply make more groups from the eight, have ten or twelve, or whatever.

      As far as taxes go, everyone is going to be taxed at the same rate, it won't matter. Count on at least 45% in taxes.

      Eight folks in Nebraska split 380 Million, you know how much each one got?  About 17 million. Yep - they paid about 244 million in taxes.

      I hope you win a really big one.

      I Agree! with guesser, you also need to contact a fiancial adviser/planner and an attorney that way those other fmaily member you are referring to won't file suit against you.

        RJOh's avatar - chipmunk
        mid-Ohio
        United States
        Member #9
        March 24, 2001
        19831 Posts
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        Posted: August 2, 2011, 2:18 pm - IP Logged

        I play PB and MM every week. If I hit the big one, I'm going to split it into 8 groups, so we can all claim it together (mostly family). My question is, can there be a group within a group? 

        Is that allowed, and if so, how would it be handled/taxed?

        Thank you :-)

        You should check with your state lottery, up until a few years ago many states would only make out a single check to one person in a lottery pool/group and the group worked out the details of taxes and etc.  Now states have a form that can be filled out with the names and SS# of each person in the pool/group with their share of the winnings and each will be given an individual check and W-2G so they are taxed individually.  Dividing a group into other groups will require more work and probably some legal advice too.

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

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          New Member
          Michigan
          United States
          Member #115341
          August 18, 2011
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          Posted: August 18, 2011, 1:32 pm - IP Logged

          No need to divide groups into groups;  just complete tax form 5754, listing each person's share, and submit it to the lottery agency when claiming.

           

          Let's say the 'club" contains 4 members sharing equally, consisting of 3 individuals, and the forth being a group of 5 people.  Each of the 3 individuals would be allocated a 25% share, and each of the 5 people in the 'group' would get 5%.  Each member would then get a W-2g for their share (as posted above).

          Most states will only issue one check to a designated individual, who then disburses each person's share (as posted above).

            tiggs95's avatar - Lottery-036.jpg

            United States
            Member #47420
            November 4, 2006
            3930 Posts
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            Posted: August 18, 2011, 1:56 pm - IP Logged

            I play PB and MM every week. If I hit the big one, I'm going to split it into 8 groups, so we can all claim it together (mostly family). My question is, can there be a group within a group? 

            Is that allowed, and if so, how would it be handled/taxed?

            Thank you :-)

            This sounds like a question for pumpi...Wait till he chimes in and helps..Hold that ticket till then..

                                                                      Pure luck