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200 Winning Pick 3 Tickets

Topic closed. 108 replies. Last post 4 years ago by dsscsystems.

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How would you cash them?

One at a time so as to avoid taxes [ 37 ]  [77.08%]
At the lottery office - I always pay my taxes [ 5 ]  [10.42%]
At the lottery office - Too Chicken to get caught [ 6 ]  [12.50%]
Total Valid Votes [ 48 ]  
Discarded Votes [ 3 ]  
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Kentucky
United States
Member #32652
February 14, 2006
7302 Posts
Offline
Posted: February 28, 2013, 10:28 pm - IP Logged

Because the state lottery only issues a W-2G on winnings over $600 as required by the IRS, than anything less is not considered winnings. If a casual gambler buys $10 worth of scratch-offs and has a $2 winner, do you really believe the IRS expects them to list the $2 as gambling winnings because "All gambling winnings must be reported"?

 

I wish I still had the URL to the IRS tax site where it specifically says ANY winnings or earned income is taxable. And it doesn't matter what type of gambler you are.

If you babysit earning 30 dollars for one day and and quit, that 30 bucks is considered taxable income. I didn't make this up.

I agree, you're not making it up; it's just that the code is written for those who believe they must declare a $2 scratch-off as gambling winnings. To put in a proper perspective, it would be almost impossible for anyone playing a slot machine to know their winnings especially when they put $20 into the machine and leave with nothing. It's possible for them to win and lose hundreds while playing.

If a player finally hits a pick-3 number straight after losing over $500 playing various lottery games during that year, is the $500 they collect really "gambling winnings"?

    Think's avatar - lightbulb
    Marquette, MI
    United States
    Member #20541
    August 20, 2005
    705 Posts
    Offline
    Posted: March 1, 2013, 11:11 am - IP Logged

    "I wish I still had the URL to the IRS tax site where it specifically says ANY winnings or earned income is taxable."-onlymoney

    Easy just google - income from whatever source derived.

    FYI   If you live in Hawaii and pay Hawaii income tax you cant deduct any gambling losses on your Hawaii income tax!  So if you buy $5,000 in tickets and win $50 you have to declare that $50 on your Hawaii income taxes and you cant deduct the $4950!

    It also applies to every other form of gambling Slots, Blackjack, etc...

    IE  if you lose on one pull of the slots and win on another  you have to declare all wins but cant deduct any of the losing pulls!

    Yay Hawaii!

    The federal income tax code should be rewritten because it started in 1913 and is a kludged up kluncked up piece of mess.  It is a 20th century tax code for the 21st century and as such it contains a lot of archaic and unfair code and ideas.


      United States
      Member #128790
      June 2, 2012
      5431 Posts
      Offline
      Posted: March 1, 2013, 11:35 am - IP Logged

      I agree, you're not making it up; it's just that the code is written for those who believe they must declare a $2 scratch-off as gambling winnings. To put in a proper perspective, it would be almost impossible for anyone playing a slot machine to know their winnings especially when they put $20 into the machine and leave with nothing. It's possible for them to win and lose hundreds while playing.

      If a player finally hits a pick-3 number straight after losing over $500 playing various lottery games during that year, is the $500 they collect really "gambling winnings"?

      I agree with what you wrote above. I guess what I'm trying to say is that the only point I was making was to clear up what I see from various people who write in forums claiming that anything under 599 is NOT taxable income. It's a myth that's been circulating as fact not just in the forums but people I meet or personally know when the subject arises. Those people really believe it's legally not taxable, and that's the misconception i'm trying to clear up.


        United States
        Member #128790
        June 2, 2012
        5431 Posts
        Offline
        Posted: March 1, 2013, 11:39 am - IP Logged

        "I wish I still had the URL to the IRS tax site where it specifically says ANY winnings or earned income is taxable."-onlymoney

        Easy just google - income from whatever source derived.

        FYI   If you live in Hawaii and pay Hawaii income tax you cant deduct any gambling losses on your Hawaii income tax!  So if you buy $5,000 in tickets and win $50 you have to declare that $50 on your Hawaii income taxes and you cant deduct the $4950!

        It also applies to every other form of gambling Slots, Blackjack, etc...

        IE  if you lose on one pull of the slots and win on another  you have to declare all wins but cant deduct any of the losing pulls!

        Yay Hawaii!

        The federal income tax code should be rewritten because it started in 1913 and is a kludged up kluncked up piece of mess.  It is a 20th century tax code for the 21st century and as such it contains a lot of archaic and unfair code and ideas.

        I already tried looking under the IRS section that deals with gambling and taxes but couldn't find the exact material I saw a few years ago.

        I guess I won't be moving to Hawaii anytime soon. Disapprove

          Avatar
          CT
          United States
          Member #60059
          April 4, 2008
          856 Posts
          Online
          Posted: March 1, 2013, 12:30 pm - IP Logged

          Once you start they'll audit you for the last X number of years . . .

           

          http://www.irs.gov/publications/p529/ar02.html#en_US_2012_publink100026911

          Gambling Losses Up to the Amount of Gambling Winnings

          You must report the full amount of your gambling winnings for the year on Form 1040, line 21. You deduct your gambling losses for the year on Schedule A (Form 1040), line 28. You cannot deduct gambling losses that are more than your winnings. Generally, nonresident aliens cannot deduct gambling losses on Schedule A (Form 1040NR).

           

          You cannot reduce your gambling winnings by your gambling losses and report the difference. You must report the full amount of your winnings as income and claim your losses (up to the amount of winnings) as an itemized deduction. Therefore, your records should show your winnings separately from your losses.

           

          Diary of winnings and losses. You must keep an accurate diary or similar record of your losses and winnings.

          Your diary should contain at least the following information.

          • The date and type of your specific wager or wagering activity.

          • The name and address or location of the gambling establishment.

          • The names of other persons present with you at the gambling establishment.

          • The amount(s) you won or lost.

           

          Proof of winnings and losses.   In addition to your diary, you should also have other documentation. You can generally prove your winnings and losses through Form W-2G, Certain Gambling Winnings, Form 5754, Statement by Person(s) Receiving Gambling Winnings, wagering tickets, canceled checks, substitute checks, credit records, bank withdrawals, and statements of actual winnings or payment slips provided to you by the gambling establishment.   For specific wagering transactions, you can use the following items to support your winnings and losses.

          Luck be with you!!!

          NOTE: All numbers posted are BOXED and unless otherwise noted.

            Avatar
            NH
            United States
            Member #83352
            December 5, 2009
            223 Posts
            Offline
            Posted: March 1, 2013, 11:05 pm - IP Logged

            I'm guessing if someone bought 200 tickets from the same place at the same time and it hit, the lottery would take a look at the camera in the store. I'm paranoid so I would think they would keep a copy of it.  I'd constantly be thinking the IRS is going to be giving me a call.

              Win$500Quick's avatar - Lottery-050.jpg
              Florida
              United States
              Member #77815
              August 1, 2009
              3459 Posts
              Offline
              Posted: March 5, 2013, 6:17 pm - IP Logged

              If I had hit for more than 10 tickets str8. I would cash in one at a time or as needed. I hit 611 and 245 for $5. I cashed all 5 in at one time. There was no problems at all.

              Guess Who's Back?

                Win$500Quick's avatar - Lottery-050.jpg
                Florida
                United States
                Member #77815
                August 1, 2009
                3459 Posts
                Offline
                Posted: March 5, 2013, 6:23 pm - IP Logged

                LP member Kenya100 hit 333 for $100 str8 a while back. I doubt if she cashed in all those tickets at once.

                Guess Who's Back?

                  Avatar
                  CHERRY HILL, NJ
                  United States
                  Member #130213
                  July 9, 2012
                  387 Posts
                  Offline
                  Posted: March 6, 2013, 8:00 pm - IP Logged

                  LP member Kenya100 hit 333 for $100 str8 a while back. I doubt if she cashed in all those tickets at once.

                  I have seen people win big from our store (where I am a regular) and all of them redeemed it from the State with taxes withheld. As far as IRS is concerned gambling winnings can be offset by losses which if you are a regular player is almost expected.

                  Trying to avoid the Taxman may not be a good idea. Your bank transactions over $10K are reported and can be a trigger for the Taxman to check on you. If you skip depositing it in the bank then you might find it hard to keep big amounts in your house.

                    Nikkicute's avatar - nnjx1k
                    Wisconsin
                    United States
                    Member #123290
                    February 17, 2012
                    3048 Posts
                    Offline
                    Posted: March 10, 2013, 2:12 pm - IP Logged

                    I'd just cash them a couple tickets at a time.

                    The lottery does not keep track of winners $599 and under.

                    When you turn in your tickets (I know!! I know!! Always sign the ticket!!)

                    you don't sign the back of a Pick 3 if you want tax free winnings, only cash in one or two at a time.


                      United States
                      Member #128790
                      June 2, 2012
                      5431 Posts
                      Offline
                      Posted: March 10, 2013, 11:59 pm - IP Logged

                      I'd just cash them a couple tickets at a time.

                      The lottery does not keep track of winners $599 and under.

                      When you turn in your tickets (I know!! I know!! Always sign the ticket!!)

                      you don't sign the back of a Pick 3 if you want tax free winnings, only cash in one or two at a time.

                      Actually one of the major reasons the IRS doesn't care about the 599 issue is because the government doesn't have the manpower to enforce it, and if it did, it would'nt be worth the expense, but one thing to be clear about, it's not because the IRS didn't care about small amounts of taxable income. Twitch

                        helpmewin's avatar - dandy
                        u$a
                        United States
                        Member #106665
                        February 22, 2011
                        19767 Posts
                        Offline
                        Posted: March 11, 2013, 12:37 am - IP Logged

                        Actually one of the major reasons the IRS doesn't care about the 599 issue is because the government doesn't have the manpower to enforce it, and if it did, it would'nt be worth the expense, but one thing to be clear about, it's not because the IRS didn't care about small amounts of taxable income. Twitch

                        why you twitch Green laugh

                        Let it Snow Snowman


                          United States
                          Member #111442
                          May 25, 2011
                          6323 Posts
                          Offline
                          Posted: March 11, 2013, 4:52 pm - IP Logged

                          I'd just cash them a couple tickets at a time.

                          The lottery does not keep track of winners $599 and under.

                          When you turn in your tickets (I know!! I know!! Always sign the ticket!!)

                          you don't sign the back of a Pick 3 if you want tax free winnings, only cash in one or two at a time.

                          Wow! A tax evader in our ranks.

                          Are you one of those that pilfer items from work as well.   What?   Hiding Behind Computer

                            Nikkicute's avatar - nnjx1k
                            Wisconsin
                            United States
                            Member #123290
                            February 17, 2012
                            3048 Posts
                            Offline
                            Posted: March 11, 2013, 7:24 pm - IP Logged

                            Wow! A tax evader in our ranks.

                            Are you one of those that pilfer items from work as well.   What?   Hiding Behind Computer

                            Tax evader?

                            Did you even read this whole thread before posting?

                            Did you pose this same question to the person who turned in 15 tickets without paying

                            taxes on his/her win or the other member who cashed in 40 tickets, no taxes?

                            My post was no different from the others that have come before mine.

                            But you only ask ME if I pilfer items from workDisapprove

                            the answer is no....wow!!!


                              United States
                              Member #111442
                              May 25, 2011
                              6323 Posts
                              Offline
                              Posted: March 11, 2013, 7:35 pm - IP Logged

                              Tax evader?

                              Did you even read this whole thread before posting?

                              Did you pose this same question to the person who turned in 15 tickets without paying

                              taxes on his/her win or the other member who cashed in 40 tickets, no taxes?

                              My post was no different from the others that have come before mine.

                              But you only ask ME if I pilfer items from workDisapprove

                              the answer is no....wow!!!

                              I said pilfer.....but I guess pilfter will do......What?......Wow!!!  Crazy