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TAX... lower tier prizes

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

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Nikkicute's avatar - nnjx1k
Wisconsin
United States
Member #123290
February 17, 2012
3050 Posts
Offline
Posted: December 7, 2013, 12:37 pm - IP Logged

Boooo !!! lol

What's the point of buying seperate tickets and playing the numbers straight if

you can't keep all of it?

I'm moving to Canada!!!!Big Grin lol

...the secret to Luck is never to trust it...

2012 wins:$20 loss:$200  2013 wins:$100 loss:$270  2014 wins:$360 loss:$273 

2015 wins:$0 loss:$53  2016 Jan $0/$15.00 Feb $0/$2.50 Mar $0/$4.00 April $0/$0 May $0/$0

June $0/$0 July $0/$0 Aug $0/$0 Sep $0/$0 Oct $0/$0

    Avatar
    Kentucky
    United States
    Member #32652
    February 14, 2006
    7308 Posts
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    Posted: December 7, 2013, 12:43 pm - IP Logged

    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.

    Even though I mentioned at least twice to check with a tax expert, you're the only LP member who says I'm saying something else.

    "No, you're a liar, Kentucky Clownboy."

    Yep, that's the type of personal insults I'd expect from someone who brags about being too dumb to know how many draws their ticket was good for. For a "top 50 poster", you're not very lottery savvy. You blame a clerk when a ticket you bought expired after saying the amount of drawings "would be fine".

    Is that like the time you had your wife try to cash your tickets because you were too lazy to get out of the car and the clerk short changed her?

      Avatar
      Kentucky
      United States
      Member #32652
      February 14, 2006
      7308 Posts
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      Posted: December 7, 2013, 1:23 pm - IP Logged

      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

      Because the ticket cost $1, the KY pick-3 straight winnings are actually $599 and no W-2G is issued.

        Avatar
        Kentucky
        United States
        Member #32652
        February 14, 2006
        7308 Posts
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        Posted: December 7, 2013, 2:40 pm - 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

        "I think it must be confusing, because we see tax questions every other week it seems."

        A KY lottery pick-3 $1 straight ticket pays $600 and the KY lottery says "Claim form is not required for prizes less than $600." and goes on to explain how "To claim a winning prize over $600:". The $600 prize will not be reported to the IRS, but the question of is it "taxable income" still exists. If Dudley Dooright wants to declare any and all lottery winnings on line 21, it's none of my business and none of my business if someone doesn't declare $60K worth of pick-4 box winners either.

        I know of a tax accountant that told a $100,000 prize winner to go long form and deduct the entire $100,000 in gambling losses without any documentation. According to the winner, he received a very nice check from the IRS from the 25% the Lottery deducted and was never audited by the IRS. I also know of a $5000 prize winner who went long form and deducted $3000 in gambling losses and was audited by the IRS and was required to sho documentation of the losses.

        "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."

        It might help, but the real confusion seems to be no definitive definition of "lottery winnings". We have one LP member saying " If you spend a billion dollars on tickets and win $1 you've got $1 in gambling winnings" and another member saying "I'm talking about net income".

        "Winnings are not necessarily income, but may become so over the course of the calendar year."

        That depends on if any lottery winnings is considered "gambling winnings" as KYFloyd suggested.

        "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."

        Just adds more to the confusion because unless the player keeps them, there is no detailed records of "unreported winnings". Do we really need to record every time we match the MM bonus number bonus number when the buck "win" back is what we spent on the ticket?

        And don't forget to ask for a receipt when cashing the "$1 winner" to prove you bought the ticket. Do you really believe the intent of the "other income" tax codes is to require casual gamblers to jump through hoops?

          Avatar
          Kentucky
          United States
          Member #32652
          February 14, 2006
          7308 Posts
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          Posted: December 7, 2013, 2:47 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.

          And that's why I suggested talking with experts.

          When you were a Craps Dealer you probably saw many players "buy in" for thousands and walk to the cage with a few hundred. And probably during their time at the table, they "won and lost" several thousands. None of the will get a W-2G, but how many of them did you see with a notebook recording every bet they made?

            rdgrnr's avatar - walt
            Way back up in them dadgum hills, son!
            United States
            Member #73904
            April 28, 2009
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            Posted: December 7, 2013, 3:00 pm - IP Logged

            Because the ticket cost $1, the KY pick-3 straight winnings are actually $599 and no W-2G is issued.

            Doesn't make any difference, stupid.

            It's STILL taxable income.

            Can't you understand that?

            Can't you get that through your thick skull?

              helpmewin's avatar - dandy
              u$a
              United States
              Member #106665
              February 22, 2011
              19771 Posts
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              Posted: December 8, 2013, 11:39 am - IP Logged

              Because the ticket cost $1, the KY pick-3 straight winnings are actually $599 and no W-2G is issued.

              ok might as well take the gas money out so i guess a win would now be $572.50 Green laugh

              Let it Snow Snowman

                Avatar
                NY
                United States
                Member #23835
                October 16, 2005
                3474 Posts
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                Posted: December 8, 2013, 12:19 pm - IP Logged

                "I think it must be confusing, because we see tax questions every other week it seems."

                A KY lottery pick-3 $1 straight ticket pays $600 and the KY lottery says "Claim form is not required for prizes less than $600." and goes on to explain how "To claim a winning prize over $600:". The $600 prize will not be reported to the IRS, but the question of is it "taxable income" still exists. If Dudley Dooright wants to declare any and all lottery winnings on line 21, it's none of my business and none of my business if someone doesn't declare $60K worth of pick-4 box winners either.

                I know of a tax accountant that told a $100,000 prize winner to go long form and deduct the entire $100,000 in gambling losses without any documentation. According to the winner, he received a very nice check from the IRS from the 25% the Lottery deducted and was never audited by the IRS. I also know of a $5000 prize winner who went long form and deducted $3000 in gambling losses and was audited by the IRS and was required to sho documentation of the losses.

                "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."

                It might help, but the real confusion seems to be no definitive definition of "lottery winnings". We have one LP member saying " If you spend a billion dollars on tickets and win $1 you've got $1 in gambling winnings" and another member saying "I'm talking about net income".

                "Winnings are not necessarily income, but may become so over the course of the calendar year."

                That depends on if any lottery winnings is considered "gambling winnings" as KYFloyd suggested.

                "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."

                Just adds more to the confusion because unless the player keeps them, there is no detailed records of "unreported winnings". Do we really need to record every time we match the MM bonus number bonus number when the buck "win" back is what we spent on the ticket?

                And don't forget to ask for a receipt when cashing the "$1 winner" to prove you bought the ticket. Do you really believe the intent of the "other income" tax codes is to require casual gamblers to jump through hoops?

                "the real confusion seems to be no definitive definition of "lottery winnings"

                There's at least one definitive definition, and as long as you're not an idiot you should be able to figure out whose definition it is.

                  HHEH-100's avatar - batman42

                  United States
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                  November 22, 2013
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                  Posted: December 8, 2013, 3:09 pm - IP Logged

                  He just said watch the calendar.... he wheeled digits too; I'm doing that now and finding it better in Pick-3.  Pick-4 doubles play a lot;  he also had a book with previous year numbers that he claim fell within 60 days of the original date ( I've never seen a book like this in Indiana or Illinois; he had some for VA, NC and GA).  This book, what he liked mainly about it was... it showed how many folks played the certain Pick-3 number straight..... he always talked about buying the numbers that wasn't sold out.  Pick-4 he bought quick picks and stuck with them..... I  have done that too and noticed,85% of the picks I've bought were singles, not double dual doubles or triples.....I think that's how he came to grips with wheeling Pick-3 & Pick-4 lottery.

                    Avatar
                    Kentucky
                    United States
                    Member #32652
                    February 14, 2006
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                    Posted: December 8, 2013, 5:29 pm - IP Logged

                    Doesn't make any difference, stupid.

                    It's STILL taxable income.

                    Can't you understand that?

                    Can't you get that through your thick skull?

                    The IRS code calls it "gambling winnings", Dummy. You don't even know what "gambling winnings" are because you never won anything substantial enough to get a W-2G.

                    And which part of I suggested that anyone should contact a tax expert is causing what's left of your brain to malfunction?

                      Avatar
                      Kentucky
                      United States
                      Member #32652
                      February 14, 2006
                      7308 Posts
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                      Posted: December 8, 2013, 5:35 pm - IP Logged

                      "the real confusion seems to be no definitive definition of "lottery winnings"

                      There's at least one definitive definition, and as long as you're not an idiot you should be able to figure out whose definition it is.

                      Would that be your definition that defines betting $1 billion to win $1 gambling winnings?

                      Do you have any real experience with "lottery winnings" or are just offering the usual BS?


                        United States
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                        Posted: December 9, 2013, 9:08 am - IP Logged

                        The following is an excerpt from the IRS website, http://www.irs.gov/taxtopics/tc419.html

                        Topic 419 - Gambling Income and Losses

                        The following rules apply to casual gamblers. Gambling winnings are fully taxable and must be reported on your tax return. Gambling  income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair  market value of prizes such as cars and trips. For additional information,  refer to Publication 525, Taxable and Nontaxable Income .

                         

                        It is important to keep an accurate diary or similar record of  your gambling winnings and losses. To deduct your losses, you must  be able to provide receipts, tickets, statements or other records  that show the amount of both your winnings and losses. Refer to Publication 529, Miscellaneous Deductions, for more information.


                          United States
                          Member #128790
                          June 2, 2012
                          5431 Posts
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                          Posted: December 9, 2013, 9:16 am - IP Logged

                          The following is an excerpt from the IRS website, http://www.irs.gov/taxtopics/tc419.html

                          Topic 419 - Gambling Income and Losses

                          The following rules apply to casual gamblers. Gambling winnings are fully taxable and must be reported on your tax return. Gambling  income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair  market value of prizes such as cars and trips. For additional information,  refer to Publication 525, Taxable and Nontaxable Income .

                           

                          It is important to keep an accurate diary or similar record of  your gambling winnings and losses. To deduct your losses, you must  be able to provide receipts, tickets, statements or other records  that show the amount of both your winnings and losses. Refer to Publication 529, Miscellaneous Deductions, for more information.

                          Solomon Poretsky           

                                        Solomon Poretsky has been writing since 1996 and  has been published in a number of trade publications including the "Minnesota  Real Estate Journal" and "Minnesota Multi-Housing Association Advocate." He  holds a Bachelor of Arts, cum laude, from Columbia University and has extensive  experience in the fields of financial services, real estate and technology

                          Read more:  http://www.ehow.com/info_8778974_lottery-winnings-taxable.html#ixzz2mzGJbLOo

                           

                          Reporting on Lottery Winnings

                          • If you receive substantial winnings from the lottery, you can expect to  receive a W-2G form from the lottery. Similar to a W-2 from work, both the IRS  and you get a copy of it, and it reports out how much you won. You will receive  a W-2G if you win at least $600 and your winnings are at least 300 times the  cost of your ticket. If you win less than this amount, the lottery will not  report your winnings to the IRS. The W-2G will report your net winnings, so, if  you spend $1 on a ticket that wins you $10,000, the W-2G will show winnings of  $9,999. For smaller prizes, many lottery players pocket the cash from a ticket  that pays $10 or $100. In fact, that income is still technically taxable, even  though the IRS receives no report it.

                            rdgrnr's avatar - walt
                            Way back up in them dadgum hills, son!
                            United States
                            Member #73904
                            April 28, 2009
                            14903 Posts
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                            Posted: December 9, 2013, 9:57 am - IP Logged

                            The following is an excerpt from the IRS website, http://www.irs.gov/taxtopics/tc419.html

                            Topic 419 - Gambling Income and Losses

                            The following rules apply to casual gamblers. Gambling winnings are fully taxable and must be reported on your tax return. Gambling  income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair  market value of prizes such as cars and trips. For additional information,  refer to Publication 525, Taxable and Nontaxable Income .

                             

                            It is important to keep an accurate diary or similar record of  your gambling winnings and losses. To deduct your losses, you must  be able to provide receipts, tickets, statements or other records  that show the amount of both your winnings and losses. Refer to Publication 529, Miscellaneous Deductions, for more information.

                            "Gambling winnings are fully taxable and must be reported on your tax return."

                            Absolutely right.

                            Good thing you didn't address that to a certain bozo from Kentucky though, cuz he'd have one of his usual hissy fits and start stalking you like he does me.

                            He says you don't have to claim any winnings unless they give you a tax form.

                              rdgrnr's avatar - walt
                              Way back up in them dadgum hills, son!
                              United States
                              Member #73904
                              April 28, 2009
                              14903 Posts
                              Offline
                              Posted: December 9, 2013, 10:00 am - IP Logged
                              Solomon Poretsky           

                                            Solomon Poretsky has been writing since 1996 and  has been published in a number of trade publications including the "Minnesota  Real Estate Journal" and "Minnesota Multi-Housing Association Advocate." He  holds a Bachelor of Arts, cum laude, from Columbia University and has extensive  experience in the fields of financial services, real estate and technology

                              Read more:  http://www.ehow.com/info_8778974_lottery-winnings-taxable.html#ixzz2mzGJbLOo

                               

                              Reporting on Lottery Winnings

                              • If you receive substantial winnings from the lottery, you can expect to  receive a W-2G form from the lottery. Similar to a W-2 from work, both the IRS  and you get a copy of it, and it reports out how much you won. You will receive  a W-2G if you win at least $600 and your winnings are at least 300 times the  cost of your ticket. If you win less than this amount, the lottery will not  report your winnings to the IRS. The W-2G will report your net winnings, so, if  you spend $1 on a ticket that wins you $10,000, the W-2G will show winnings of  $9,999. For smaller prizes, many lottery players pocket the cash from a ticket  that pays $10 or $100. In fact, that income is still technically taxable, even  though the IRS receives no report it.

                              "For smaller prizes, many lottery players pocket the cash from a ticket  that pays $10 or $100. In fact, that income is still technically taxable, even  though the IRS receives no report it."

                              Don't tell Kentucky Numbnuts that, he'll go into a rage.