Welcome Guest
Log In | Register )
You last visited December 7, 2016, 10:55 pm
All times shown are
Eastern Time (GMT-5:00)

TAX... lower tier prizes

Topic closed. 86 replies. Last post 3 years ago by mikeintexas.

Page 3 of 6
3.54
PrintE-mailLink
rdgrnr's avatar - walt
Way back up in them dadgum hills, son!
United States
Member #73904
April 28, 2009
14903 Posts
Offline
Posted: December 6, 2013, 4:15 am - IP Logged

I already was in an argument with someone with zero experience with substancal lottery winnings so I'm not interested in arguing with anyone who had multiple pick-3 straight winning tickets and other opinions on whether or not to include it as income.

Gambling winnings. You must include your gambling winnings in your income on Form 1040, line 21.

The difference is the winnings on a W-2G ($601 to $5000) is reported winnings, but there is no reported winnings up to $600. How anyone views unreported income is up to them, but Bribes are defined as income too.

Bribes. If you receive a bribe, include it in your income.

The guy was just asking for honest advice and you tell him to break the law.

Just because you cheat on your income taxes and get away with it doesn't make it a good idea.

You shouldn't counsel people to break the law unless you can serve the time for them.

Just because they don't give you a tax form on a $600 win doesn't mean it's not taxable income, wake the hell up.

Deal with your own guilt and fear for not paying your taxes; don't drag other people into your "misery loves company" trap.

    helpmewin's avatar - dandy
    u$a
    United States
    Member #106665
    February 22, 2011
    19840 Posts
    Offline
    Posted: December 6, 2013, 5:48 am - IP Logged

    What's impossible about hitting pick4 box with 100 tickets

    Does anyone on Lottery Post think winning is possible.....

    So many folk on here lose so much.

    When they see a winner or read about one. They think its a hoax...

    As far as to prove tickets to lotterypost members. Who does that..
    What would it prove.  I'f I'm a winner I could care less what any
    Member on LP thought.   

    Btw, I know u already know this...

    When I see winners or read their story. I don't have envy

    I congratulate...

    I suspect on LotteryPost when most folk read about a member other than
    Themselves winning. Its a problem.  Smh

    cash4ninja, For one thing i wasn't talking to you. 

    And for the second thing I Agree! with what you said 

    "I could care less what any Member on LP thought"  <------------LET'S START WITH YOU! Hit With Stick

    Let it Snow Snowman

      HHEH-100's avatar - batman42

      United States
      Member #149179
      November 22, 2013
      37 Posts
      Offline
      Posted: December 6, 2013, 2:00 pm - IP Logged

      but there is no reported winnings up to $600

       

      I disagree. Just because there's no form to fill out for it doesn't make that income exempt from paying tax on it.

      If I paint a wall for a friend for 20 bucks, it's still taxable income. Winning 20 bucks on a scratcher is also taxable income.

       

      Does the IRS have the resources to enforce all the trivial income not being reported on a daily basis?    NO !

      But technically, it's still taxable income.

      You are 100% correct.

        Avatar
        Kentucky
        United States
        Member #32652
        February 14, 2006
        7311 Posts
        Offline
        Posted: December 6, 2013, 2:48 pm - IP Logged

        but there is no reported winnings up to $600

         

        I disagree. Just because there's no form to fill out for it doesn't make that income exempt from paying tax on it.

        If I paint a wall for a friend for 20 bucks, it's still taxable income. Winning 20 bucks on a scratcher is also taxable income.

         

        Does the IRS have the resources to enforce all the trivial income not being reported on a daily basis?    NO !

        But technically, it's still taxable income.

        I'm not sure what you're disagreeing with because I never said unreported gambling winnings are tax exempt. I guessed I wrongly assumed you had experience with getting a W-2G from lottery winnings too. If you paint a wall for a friend and believe it's unreported taxable income, declare it on your 1040 and if you win 20 bucks on a scratch-off, declare that too.

        I don't know how long you've been on LP, but their are many different definitions of "gambling winnings". If you spend $100 to "win" that 20 bucks on that scratch-off, is it still taxable income?

          Avatar
          Kentucky
          United States
          Member #32652
          February 14, 2006
          7311 Posts
          Offline
          Posted: December 6, 2013, 3:13 pm - IP Logged

          The guy was just asking for honest advice and you tell him to break the law.

          Just because you cheat on your income taxes and get away with it doesn't make it a good idea.

          You shouldn't counsel people to break the law unless you can serve the time for them.

          Just because they don't give you a tax form on a $600 win doesn't mean it's not taxable income, wake the hell up.

          Deal with your own guilt and fear for not paying your taxes; don't drag other people into your "misery loves company" trap.

          I know you're trying to save face with all your SAHM groupies, but you're a liar for saying I told anyone to break the law. We all know you're full of it, but that doesn't mean you can lie about other members.

          "Just because they don't give you a tax form on a $600 win doesn't mean it's not taxable income, wake the hell up."

          Why are you lying and trying to make it look like I said unreported income isn't taxable?

            Avatar
            Kentucky
            United States
            Member #32652
            February 14, 2006
            7311 Posts
            Offline
            Posted: December 6, 2013, 3:30 pm - IP Logged

            The concept of "taxable income"  is simple and straighforward. Which part is confusing you?

            I thought you knew better.

            Gambling winnings. You must include your gambling winnings in your income on Form 1040, line 21.

            "Gambling winnings" is the confusing part. If a scratch-off player spends $20 on four $5 scratch-off tickets and one of the tickets is a $10 winner, which part of the fact the player still lost $10 and had no actual gambling winnings is confusing you?

              Avatar
              NY
              United States
              Member #23835
              October 16, 2005
              3474 Posts
              Offline
              Posted: December 6, 2013, 6:52 pm - IP Logged

              I thought you knew better.

              Gambling winnings. You must include your gambling winnings in your income on Form 1040, line 21.

              "Gambling winnings" is the confusing part. If a scratch-off player spends $20 on four $5 scratch-off tickets and one of the tickets is a $10 winner, which part of the fact the player still lost $10 and had no actual gambling winnings is confusing you?

              "Gambling winnings" is the confusing part

               

              I guess so.  If you spend a billion dollars on tickets and win $1 you've got $1 in gambling winnings. That you have enough in deductible losses to eliminate taxes doesn't mean you don't have winnings that are supposed to be reported. The rules on the IRS website are perfectly clear, and I would have presumed you'd be able to understand them.

              I'd also have thought it was pretty easy to understand that my post was directed at the mathematical anomaly who was talking about gambling profits of 60 grand.

                rdgrnr's avatar - walt
                Way back up in them dadgum hills, son!
                United States
                Member #73904
                April 28, 2009
                14903 Posts
                Offline
                Posted: December 6, 2013, 7:51 pm - IP Logged

                Stack47,

                Irwin Schiff, currently serving time in a federal pen., tried telling the whole country they don't have to pay taxes.

                He don't wanna hear it, CT.

                Don't confuse him with facts, his mind is made up.

                  rdgrnr's avatar - walt
                  Way back up in them dadgum hills, son!
                  United States
                  Member #73904
                  April 28, 2009
                  14903 Posts
                  Offline
                  Posted: December 6, 2013, 8:01 pm - IP Logged

                  I know you're trying to save face with all your SAHM groupies, but you're a liar for saying I told anyone to break the law. We all know you're full of it, but that doesn't mean you can lie about other members.

                  "Just because they don't give you a tax form on a $600 win doesn't mean it's not taxable income, wake the hell up."

                  Why are you lying and trying to make it look like I said unreported income isn't taxable?

                  No, you're a liar, Kentucky Clownboy.

                  You've been pitching that line of bs that you don't have to pay taxes on winnings if they don't give you a tax form for a long, long time now.

                  That's a lie and you know it.

                  Pay your fair share like everybody else.


                    United States
                    Member #128790
                    June 2, 2012
                    5431 Posts
                    Offline
                    Posted: December 6, 2013, 10:13 pm - IP Logged

                    I'm not sure what you're disagreeing with because I never said unreported gambling winnings are tax exempt. I guessed I wrongly assumed you had experience with getting a W-2G from lottery winnings too. If you paint a wall for a friend and believe it's unreported taxable income, declare it on your 1040 and if you win 20 bucks on a scratch-off, declare that too.

                    I don't know how long you've been on LP, but their are many different definitions of "gambling winnings". If you spend $100 to "win" that 20 bucks on that scratch-off, is it still taxable income?

                    If you spend $100 to "win" that 20 bucks on that scratch-off, is it still taxable income?

                     

                    No, I'm talking about net income.


                      United States
                      Member #128790
                      June 2, 2012
                      5431 Posts
                      Offline
                      Posted: December 6, 2013, 10:19 pm - IP Logged

                      You are 100% correct.

                      Thanks Ed McMahon. Green laugh

                        helpmewin's avatar - dandy
                        u$a
                        United States
                        Member #106665
                        February 22, 2011
                        19840 Posts
                        Offline
                        Posted: December 6, 2013, 11:05 pm - IP Logged

                        In New York, it is designed so that you can collect your winnings up to 600 without paying taxes. If you have 3 "separate" tickets, yout still tax free in New York.

                        Same here $500.00, $600.00 in KY you can get money at the store no questions ask.

                        as for taxes i think you have to make so much money a year to even FILE TAXES.

                        so if you choose to go to the Lottery office they will handle everything for you so that way you can live a stress FREE life and be Happy and go spend your money and have some FUN!Party

                        Let it Snow Snowman

                          Jon D's avatar - calotterylogo
                          Los Angeles, California
                          United States
                          Member #103813
                          January 5, 2011
                          1530 Posts
                          Offline
                          Posted: December 6, 2013, 11:05 pm - IP Logged

                          I thought you knew better.

                          Gambling winnings. You must include your gambling winnings in your income on Form 1040, line 21.

                          "Gambling winnings" is the confusing part. If a scratch-off player spends $20 on four $5 scratch-off tickets and one of the tickets is a $10 winner, which part of the fact the player still lost $10 and had no actual gambling winnings is confusing you?

                          I think it must be confusing, because we see tax questions every other week it seems. Maybe LP needs a place for "sticky" topics and guides, written by members, approved by staff, that could possibly go in the help section or someplace for common lottery questions.

                          I think most people are confused between winnings and income, and between reporting and withholding.

                          Winnings $600 or above are reported to the IRS. Winnings above $5000 are subject to automatic 25% withholding in addition to reporting. Winnings under $600 are not reported, but you are required to report the winnings yourself on the honor system. All winnings are assumed to be income and treated as income and will be taxed, unless you can deduct the losses to show no net income when you file.

                          http://www.irs.gov/instructions/iw2g/ar02.html

                          The IRS wants to tax income. Winnings are not necessarily income, but may become so over the course of the calendar year. They are not interested in tiny minutiae of every little bet, like every hand of blackjack or every scratch card you play. But you are required to keep detailed records or a daily diary in support of your claims of deductions, or in the case of an audit.

                          P.S. I too am waiting for someone to ask: OMG, how did your friend make $60K from P4 box in 11 months, what's the secret? Naughty

                            duckman's avatar - ducklogodrake64x64
                            Jacksonville Florida
                            United States
                            Member #23018
                            October 6, 2005
                            918 Posts
                            Online
                            Posted: December 7, 2013, 12:19 am - IP Logged

                            I think it must be confusing, because we see tax questions every other week it seems. Maybe LP needs a place for "sticky" topics and guides, written by members, approved by staff, that could possibly go in the help section or someplace for common lottery questions.

                            I think most people are confused between winnings and income, and between reporting and withholding.

                            Winnings $600 or above are reported to the IRS. Winnings above $5000 are subject to automatic 25% withholding in addition to reporting. Winnings under $600 are not reported, but you are required to report the winnings yourself on the honor system. All winnings are assumed to be income and treated as income and will be taxed, unless you can deduct the losses to show no net income when you file.

                            http://www.irs.gov/instructions/iw2g/ar02.html

                            The IRS wants to tax income. Winnings are not necessarily income, but may become so over the course of the calendar year. They are not interested in tiny minutiae of every little bet, like every hand of blackjack or every scratch card you play. But you are required to keep detailed records or a daily diary in support of your claims of deductions, or in the case of an audit.

                            P.S. I too am waiting for someone to ask: OMG, how did your friend make $60K from P4 box in 11 months, what's the secret? Naughty

                            This is correct.

                            Report it, keep good records, but don't worry...if you are like the vast majority of lottery players, you will lose more than you win...

                              rdgrnr's avatar - walt
                              Way back up in them dadgum hills, son!
                              United States
                              Member #73904
                              April 28, 2009
                              14903 Posts
                              Offline
                              Posted: December 7, 2013, 7:02 am - IP Logged

                              I think it must be confusing, because we see tax questions every other week it seems. Maybe LP needs a place for "sticky" topics and guides, written by members, approved by staff, that could possibly go in the help section or someplace for common lottery questions.

                              I think most people are confused between winnings and income, and between reporting and withholding.

                              Winnings $600 or above are reported to the IRS. Winnings above $5000 are subject to automatic 25% withholding in addition to reporting. Winnings under $600 are not reported, but you are required to report the winnings yourself on the honor system. All winnings are assumed to be income and treated as income and will be taxed, unless you can deduct the losses to show no net income when you file.

                              http://www.irs.gov/instructions/iw2g/ar02.html

                              The IRS wants to tax income. Winnings are not necessarily income, but may become so over the course of the calendar year. They are not interested in tiny minutiae of every little bet, like every hand of blackjack or every scratch card you play. But you are required to keep detailed records or a daily diary in support of your claims of deductions, or in the case of an audit.

                              P.S. I too am waiting for someone to ask: OMG, how did your friend make $60K from P4 box in 11 months, what's the secret? Naughty

                              "Winnings under $600 are not reported, but you are required to report the winnings yourself on the honor system. All winnings are assumed to be income and treated as income and will be taxed, unless you can deduct the losses to show no net income when you file."

                              Exactly.

                              This is what the OP wanted to know.

                              Thank you, Jon D.