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Question about a citizen from Ecuador winning

Topic closed. 16 replies. Last post 4 years ago by LottoBoner.

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ozone park
United States
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Posted: January 2, 2013, 9:11 pm - IP Logged

I bought scratch offs for all my family in Ecaudor as a gift and one o fmy cousins hit for 50,000 thousand. Now what do we do. he has np visa to come to the usa and if i claim it for him I have to pay the taxes as a us citizen but is it true that if he claims it as a ecuardorian citizen he does not have to pay any taxes on the money because ecuador does not tax their citizens on lottery winnings? can anyone help and advise thanks


    United States
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    Posted: January 2, 2013, 9:12 pm - IP Logged

    I bought scratch offs for all my family in Ecaudor as a gift and one o fmy cousins hit for 50,000 thousand. Now what do we do. he has np visa to come to the usa and if i claim it for him I have to pay the taxes as a us citizen but is it true that if he claims it as a ecuardorian citizen he does not have to pay any taxes on the money because ecuador does not tax their citizens on lottery winnings? can anyone help and advise thanks

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      ozone park
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      Posted: January 2, 2013, 9:17 pm - IP Logged

      But I understand that certain countries do not pay tazes on lottery winnings they win in the usa that I know for sure i just am not sure about Ecuador

        BuyLow's avatar - palm tree.jpg
        Florida
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        Posted: January 2, 2013, 9:18 pm - IP Logged

        There are all sorts of issues here....mailing over state/country lines, gift tax etc.  Have them send the ticket back to you.  Redeem it as if you never sent it in the first place, pay the taxes owed and send them the balance....minus a small fee for your inconvenience, lol....

          savagegoose's avatar - ProfilePho
          adelaide sa
          Australia
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          Posted: January 2, 2013, 9:28 pm - IP Logged

          no infact there is an extra %10 tax on forigners just for good measure.

          2014 = -1016; 2015= -1409; 2016 JAN = -106; FEB= -81; MAR= -131; APR= - 87: MAY= -91; JUN= -39; JUL=-134; AUG= -124; SEP = -123; OCT= -84  NOV=- 73 TOT= -3498

          keno historic = -2291 ; 2015= -603; 2016= JAN=-32, FEB= +12 , MAR= -86, APR = -77. MAY= -48, JUN= -29, JUL=-71; AUG = -52; SEPT= -43; OCT = +56 NOV = -33 TOT= -3297

            Original Bey's avatar - Lottery-022.jpg

            Bahamas
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            Posted: January 2, 2013, 9:31 pm - IP Logged

            United States Income Tax Treaties - A to Z

            The United States has tax treaties with a number of foreign countries. Under these treaties, residents (not necessarily citizens) of foreign countries are taxed at a reduced rate, or are exempt from U.S. taxes on certain items of income they receive from sources within the United States. These reduced rates and exemptions vary among countries and specific items of income. Under these same treaties, residents or citizens of the United States are taxed at a reduced rate, or are exempt from foreign taxes, on certain items of income they receive from sources within foreign countries. Most income tax treaties contain what is known as a "saving clause" which prevents a citizen or resident of the United States from using the provisions of a tax treaty in order to avoid taxation of U.S. source income.
            If the treaty does not cover a particular kind of income, or if there is no treaty between your country and the United States, you must pay tax on the income in the same way and at the same rates shown in the instructions for the applicable U.S. tax return.
            Many of the individual states of the United States tax income which is sourced in their states. Therefore, you should consult the tax authorities of the state from which you derive income to find out whether any state tax applies to any of your income. Some states of the United States do not honor the provisions of tax treaties.
            This page provides links to tax treaties between the United States and particular countries. For further information on tax treaties refer also to the Treasury Department's Tax Treaty Documents page.

             


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              helpmewin's avatar - dandy
              u$a
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              Posted: January 2, 2013, 9:52 pm - IP Logged

              United States Income Tax Treaties - A to Z

              The United States has tax treaties with a number of foreign countries. Under these treaties, residents (not necessarily citizens) of foreign countries are taxed at a reduced rate, or are exempt from U.S. taxes on certain items of income they receive from sources within the United States. These reduced rates and exemptions vary among countries and specific items of income. Under these same treaties, residents or citizens of the United States are taxed at a reduced rate, or are exempt from foreign taxes, on certain items of income they receive from sources within foreign countries. Most income tax treaties contain what is known as a "saving clause" which prevents a citizen or resident of the United States from using the provisions of a tax treaty in order to avoid taxation of U.S. source income.
              If the treaty does not cover a particular kind of income, or if there is no treaty between your country and the United States, you must pay tax on the income in the same way and at the same rates shown in the instructions for the applicable U.S. tax return.
              Many of the individual states of the United States tax income which is sourced in their states. Therefore, you should consult the tax authorities of the state from which you derive income to find out whether any state tax applies to any of your income. Some states of the United States do not honor the provisions of tax treaties.
              This page provides links to tax treaties between the United States and particular countries. For further information on tax treaties refer also to the Treasury Department's Tax Treaty Documents page.

               


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                Posted: January 2, 2013, 10:40 pm - IP Logged

                I bought scratch offs for all my family in Ecaudor as a gift and one o fmy cousins hit for 50,000 thousand. Now what do we do. he has np visa to come to the usa and if i claim it for him I have to pay the taxes as a us citizen but is it true that if he claims it as a ecuardorian citizen he does not have to pay any taxes on the money because ecuador does not tax their citizens on lottery winnings? can anyone help and advise thanks

                I think you have to pay the federal and state taxes here...the state you won in unless they have no state tax.....but Uncle Sam is ging to get his money....right off the top...

                  rdgrnr's avatar - walt
                  Way back up in them dadgum hills, son!
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                  Posted: January 2, 2013, 11:46 pm - IP Logged

                  Uncle Barack will take his cut first and it will be substantial.

                  Then your state will take their cut.

                  Then Uncle Barack will come back for even more of it on April 15th.

                  They will take the shirt off your back.

                  And if you resist?

                  They'll take your pants too.

                  But hey, half the country's on food stamps, the other half has to pay for it, do the math.

                  Good luck!

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                    Posted: January 3, 2013, 12:03 am - IP Logged

                    State and Federal government will immediately withhold portion of the prize for taxes when you claim it. That is normally 25% for federal for Americans, but since he is a foreigner it's 35% automatically held from the prize. The State government will also do this for a certain amount (some states, however, do not have taxes on their lottery prizes). You will file taxes for the U.S. and State (if the state has income tax) at the end of the year. If you don't file, you give up the money withheld (in this case, you would be giving away money since the tax you'd pay in the U.S. on that 50,000 would be less than the amount withheld).

                     

                    You also have to file your country's own taxes. and there might be some credits provided for tax paid in the U.S. You'd ultimately pay the higher tax (U.S. or whatever your country), though it would be split between the 2 countries - you'd pay up to the lower tax rate first, then you'd pay the remaining for the higher country's tax. If the U.S. is the higher tax altogether, you'd pay all of it to the U.S. and get a credit on your local country's taxes.

                      haymaker's avatar - Lottery-012.jpg
                      Egg Harbor twp.south Jersey shore
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                      Posted: January 3, 2013, 2:17 pm - IP Logged

                      Another good reason not to buy tix. for gifts.

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

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                        ozone park
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                        Posted: January 5, 2013, 2:54 pm - IP Logged

                        When the guy from England won a few years ago he won the scratch off 1 million dollars a year for life. But because he lives in England he gets $970,000.00 dollars a year for 20 years at least and because England doe snot tax income from lottery winnings he gets to keep alomost 100% fo the money. That was why i am asking this questions because this case I mentioned is factual.


                          United States
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                          Posted: January 5, 2013, 2:56 pm - IP Logged

                          When the guy from England won a few years ago he won the scratch off 1 million dollars a year for life. But because he lives in England he gets $970,000.00 dollars a year for 20 years at least and because England doe snot tax income from lottery winnings he gets to keep alomost 100% fo the money. That was why i am asking this questions because this case I mentioned is factual.

                          Yes, but from what I understand England and the U.S. have some sort of special agreement/arrangement, where they dont tax twice.

                          Ecuador, does not have that sort of nepotism, i think, if that is the right word.

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                            Bahamas
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                            Posted: January 5, 2013, 3:11 pm - IP Logged

                            Yes, but from what I understand England and the U.S. have some sort of special agreement/arrangement, where they dont tax twice.

                            Ecuador, does not have that sort of nepotism, i think, if that is the right word.

                            Reciprocity....

                             

                            United Kingdom is on the listing I provided above Ecuador isn't.

                            "Everything works  ONCE!"


                              United States
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                              Posted: January 5, 2013, 3:19 pm - IP Logged

                              Reciprocity....

                               

                              United Kingdom is on the listing I provided above Ecuador isn't.

                              1 : the quality or state of being reciprocal  : mutual dependence, action, or influence
                              2 : a mutual exchange of privileges;  specifically   : a recognition by one of two countries or institutions of the validity of licenses or privileges granted by the other