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New Hot Lotto

Topic closed. 17 replies. Last post 4 years ago by maringoman.

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Delaware
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Posted: May 12, 2013, 2:54 am - IP Logged

So the hot lotto game has changed and on the website it's say $6,160,000 tax withholding paid. so essientially you still owe the other 14.6% in taxes?

    HoLeeKau's avatar - YheaShea
    Idaho
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    Posted: May 12, 2013, 10:23 am - IP Logged

    Right.

    I got an email from my state lottery saying that all taxes are paid - which I assume means state taxes also.  Hope so, since mine charges another almost 8%.

    But they don't normally withhold state taxes, do they?  So it's possible none of the state taxes are covered if you read it that way.  Dead

      Artist77's avatar - batman14

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      Posted: May 12, 2013, 10:29 am - IP Logged

      I thought it meant the 25% that lotteries typically withhold and then you owe the rest (state and any additional federal)?

      J'aime La France.

        maringoman's avatar - images q=tbn:ANd9GcTbRxpKQmOfcCoUqF2FyqIOAwDo7rg9G-lfJLAALPGWJWwiz19eRw
        Massachusetts
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        Posted: May 12, 2013, 10:29 am - IP Logged

        What if a New Yorker bought HotLotto in New Hampshire and won. NH has no state taxes on lottery and is a member of Hot Lotto while NYC has city, state and federal taxes on lottery winnings and does not carrry Hot Lotto. How will they decide this sitiwation? will the New Yorker get all his taxes paid?

        That money's gone fo ever

          Saylorgirl's avatar - Lottery-065.jpg
          Indiana
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          Posted: May 12, 2013, 10:45 am - IP Logged

          What if a New Yorker bought HotLotto in New Hampshire and won. NH has no state taxes on lottery and is a member of Hot Lotto while NYC has city, state and federal taxes on lottery winnings and does not carrry Hot Lotto. How will they decide this sitiwation? will the New Yorker get all his taxes paid?

          I believe they only pay the 25% due to the fed when you validate your ticket, you are then responsible for your state, local and additional fed taxes.

            rdgrnr's avatar - walt
            Way back up in them dadgum hills, son!
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            Posted: May 12, 2013, 1:20 pm - IP Logged

            The little Hot Lotto insert they put with the playslips in Tennessee mentions it twice:

            "All withholding taxes on the Jackpot amount will be paid by the Lottery of the state in which the prize was won."

            and

            "The Jackpot prize amount won will include TAX withholding to be paid on behalf of the winner." 

            I report.

            You decide.

              maringoman's avatar - images q=tbn:ANd9GcTbRxpKQmOfcCoUqF2FyqIOAwDo7rg9G-lfJLAALPGWJWwiz19eRw
              Massachusetts
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              Posted: May 13, 2013, 4:42 pm - IP Logged

              I believe they only pay the 25% due to the fed when you validate your ticket, you are then responsible for your state, local and additional fed taxes.

              Oh ok. Still nice!

              That money's gone fo ever

                Artist77's avatar - batman14

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                Posted: May 13, 2013, 5:24 pm - IP Logged

                I checked with a couple of friends on this issue and they said it likely runs counter to IRS case law and regulations and you will have to pay taxes on anything that is paid on your behalf.  Remember if you win, regardless of what anyone tells you about paying taxes for you, you have to obligation to check with the IRS and you should get it in writing.

                Richard Hatch from "Survivor" served time in prison for not paying taxes on his win and he was very likely was told by the show that they would pay the taxes (this is common on tv shows, etc). He messed up when he did not check with the IRS. The burden is on the winner. Regardless of what we all may think of the IRS, I am sure no one wants to serve time in prison.

                J'aime La France.

                  PlayToWin47's avatar - Lottery-041.jpg
                  Joplin MO
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                  Posted: May 13, 2013, 10:45 pm - IP Logged

                  Right.

                  I got an email from my state lottery saying that all taxes are paid - which I assume means state taxes also.  Hope so, since mine charges another almost 8%.

                  But they don't normally withhold state taxes, do they?  So it's possible none of the state taxes are covered if you read it that way.  Dead

                  As far as state taxes ... it may depend on the state for how it does it.

                  In Kansas, their website says that they withhold 25% federal and 5% state ... and "The winner's ultimate tax liability may be more or less than the amounts withheld, depending on other factors".  It was like this before the game change, also.

                  It sounds like that is a fixed amount in KS.  If, for example, you lived in a neighboring state (as I do), you would still deal with the same ol' tax stuff like "credit for taxes paid to another state" / etc. ... and may pay more if your resident state's taxes are higher.

                    PlayToWin47's avatar - Lottery-041.jpg
                    Joplin MO
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                    Posted: May 13, 2013, 10:49 pm - IP Logged

                    What if a New Yorker bought HotLotto in New Hampshire and won. NH has no state taxes on lottery and is a member of Hot Lotto while NYC has city, state and federal taxes on lottery winnings and does not carrry Hot Lotto. How will they decide this sitiwation? will the New Yorker get all his taxes paid?

                    Good question!

                    I would bet NH would probably not cross state lines to pay NYC taxes.

                      HoLeeKau's avatar - YheaShea
                      Idaho
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                      Posted: May 14, 2013, 12:26 am - IP Logged

                      Just saw a TV ad for Idaho.  It said "taxes are paid so you get the whole jackpot."  So I still don't know what that means exactly.

                        HoLeeKau's avatar - YheaShea
                        Idaho
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                        Posted: May 14, 2013, 10:31 am - IP Logged

                        OK I found the ad on You Tube and it says "we pay the jackpot taxes so you keep the whole thing."  Which sounds like ALL taxes paid.  But the caption under the video says the Idaho Lottery pays the withholding tax.  I didn't see a disclaimer on the TV ad -- maybe someone needs to have a little talk with them about truth in advertising.

                          maringoman's avatar - images q=tbn:ANd9GcTbRxpKQmOfcCoUqF2FyqIOAwDo7rg9G-lfJLAALPGWJWwiz19eRw
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                          Posted: May 14, 2013, 3:48 pm - IP Logged

                          Just saw a TV ad for Idaho.  It said "taxes are paid so you get the whole jackpot."  So I still don't know what that means exactly.

                          MUSL is being very economical with the information on taxes. Its as vague as the Federal tax code that every president is sworn-in pledging to simplify it.

                          That money's gone fo ever

                            dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
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                            Posted: May 14, 2013, 4:29 pm - IP Logged

                            Oklahoma website states " Hit the Jackpot, Your taxes are paid.

                            I Love Pink & Green 1908

                              Artist77's avatar - batman14

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                              Posted: May 14, 2013, 5:48 pm - IP Logged

                              MUSL is being very economical with the information on taxes. Its as vague as the Federal tax code that every president is sworn-in pledging to simplify it.

                              lol

                              J'aime La France.