Kentucky United States
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Quote: Originally posted by rdgrnr on Dec 6, 2013
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?
Kentucky United States
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Quote: Originally posted by helpmewin on Dec 6, 2013
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!
Because the ticket cost $1, the KY pick-3 straight winnings are actually $599 and no W-2G is issued.
Kentucky United States
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Quote: Originally posted by Jon D on Dec 6, 2013
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.
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?
"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?
Kentucky United States
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Quote: Originally posted by Coin Toss on Dec 5, 2013
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?
NY United States
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October 16, 2005
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Quote: Originally posted by Stack47 on Dec 7, 2013
"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.
59th & Wabash (Chicago) United States
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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.
Kentucky United States
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Quote: Originally posted by rdgrnr on Dec 7, 2013
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?
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.
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
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.
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.
The Hall Of The Mountain Kings Tennessee United States
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April 28, 2009
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Quote: Originally posted by onlymoney on Dec 9, 2013
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
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.