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Taxes on tickets with advance drawings

Topic closed. 4 replies. Last post 3 years ago by maringoman.

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schmuckatelly's avatar - half planet.jpg
Jacksonville, Florida
United States
Member #140364
March 17, 2013
195 Posts
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Posted: October 23, 2013, 9:50 am - 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?

    TooTallLuke's avatar - img 8jc7G2.jpg
    Ontario
    Canada
    Member #137286
    December 31, 2012
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    Posted: October 23, 2013, 12:10 pm - IP Logged

    Correct. The wins will be viewed as 5 different wins.

      Jon D's avatar - calotterylogo
      Los Angeles, California
      United States
      Member #103813
      January 5, 2011
      1530 Posts
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      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. Wink

        haymaker's avatar - Lottery-012.jpg
        Egg Harbor twp.south Jersey shore
        United States
        Member #112968
        June 29, 2011
        3856 Posts
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        Posted: October 23, 2013, 1:51 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?

        I agree w/ Jon D

        If I were going to play the same #s 5 times I go w/ separate tix. just to be safe.

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

          maringoman's avatar - images q=tbn:ANd9GcTbRxpKQmOfcCoUqF2FyqIOAwDo7rg9G-lfJLAALPGWJWwiz19eRw
          Massachusetts
          United States
          Member #37433
          April 14, 2006
          2747 Posts
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          Posted: October 23, 2013, 3:52 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?

          Technically you are supposed to report the $500s wins when doing your taxes and I am sure you would just like I would hehe LOL

          But if you want to avoid the withholding tax then it would be prudent to cash in the $500s after every drawing. Don't let the $500s accumulate because if they do then you will have to pay withholding tax.

          That money's gone fo ever