|Posted: October 23, 2013, 12:30 pm - IP Logged|
Now I know if you have 5 seperate tickets with same numbers and they each win $500 I collect $2,500 without any tax information needed since it's not reported to the IRS unless its over $600, but what if I have one ticket with 5 draws and each drawing I win $500 and I collect after the last drawing, is it still unreported to the IRS?
It will be treated like 1 ticket winning $2500.
The IRS don't care about your playstyle arrangement with the lottery, they just care that you cashed 1 ticket winning $2500. It is reported as income and you then have to prove that it's not come tax time. If you blew through $3000 that year to get that $2500 win, you have to prove it wasn't net income.
If you do happen to win $500 on the first play of a advance play ticket, cash it. Then they should issue you an exchange ticket with the remaining 4 plays.(at least they do here in CA, I assume FL is the same)
Keep in mind, that even though any $500 ticket you cashed at the retailer is "unreported" that if it's net income, the IRS still wants you to file it come tax time, just that it's on the honor system.