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TAX... lower tier prizes

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

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p4wanbi's avatar - Lottery-062.jpg
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180 Posts
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Posted: December 10, 2013, 12:15 pm - IP Logged

Jon D, you're right but that would depend on the states you're in. Each state has their policy for the jackpot games, even the payouts are different and also the alloted time to cash it in. It varies state by state although the games are national games.

playing what can be afforded...spend half of what was reclaimed.

    Jon D's avatar - calotterylogo
    Los Angeles, California
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    January 5, 2011
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    Posted: December 10, 2013, 12:54 pm - IP Logged

    Jon D, you're right but that would depend on the states you're in. Each state has their policy for the jackpot games, even the payouts are different and also the alloted time to cash it in. It varies state by state although the games are national games.

    Mike was talking about Uncle Sam, meaning the IRS/Feds, and that is the same for all states. Also was referring to Mega Millions, which is a jackpot game with cash and annuity options.

    For a jackpot game with annuity and cash option, you have up to 60 days to choose your payment option, and at that point your are "actually" paid. So for instance if you won Mega Millions JP in October 2013, but claimed in January 2014, your winnings would be in 2013 because your choice expired and you had automatic annuity chosen for you in December.

    Or let's say you won Fantasy 5 JP today, which is cash only with no annuity option, but waited till January to claim the prize, and you lived next door to the lottery office. The IRS may argue you were "constructively" paid in December, not January, because you had plenty of time to walk next door and claim your prize with the usual waiting period.

      Avatar
      Kentucky
      United States
      Member #32652
      February 14, 2006
      7310 Posts
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      Posted: December 10, 2013, 1:38 pm - IP Logged

      " explain to us how the IRS could find out that someone cashed three $400 box wins last month and collected $1200?"

      You just don't get it, do you, numbnuts?

      You're a cheat and a thief and a chiseler and a crook by nature and that's why you ask a question like that.

      You keep talking about how you can get away with not paying your taxes by not declaring all your winnings.

      And I keep explaining how that is wrong and illegal, you insufferable moron!

      I'm tired of trying to explain simple things to you, mutton-head.

      You won't listen to logic or common sense and you especially won't listen to the law so I'm not going to waste my time.

      Now listen up, schmuck-weasel, if you don't want to pay your taxes, that's your business, but don't go advising newcomers to try and get away with it unless you're going to pay their penalties or serve their jail time. Not your job. Mind your own business.

       

       " Do you have something against the people in Kentucky now?"

       No, I have good friends in Kentucky, it's just the really dumb, obnoxious hicks like you that grate on people's nerves.

       Now go brush your tooth and go to bed.

      You're still doing what you do best; trying to be a cyber bully using juvenile name calling when you can't prove something. 

      "You won't listen to logic or common sense and you especially won't listen to the law"

      You haven't shown any law, Dummy; you're just babbling on because there is no law defining "gambling winnings".

      "In applying § 165(d), it is necessary to interpret the words “gains” and “losses”
      from wagering transactions.  These terms are not defined in the Code, regulations,
      legislative history, or published guidance.  As discussed below, courts have differed in
      interpreting the terms."   -----   www.irs.gov/pub/irs-utl/am2008013.pdf 

      "don't go advising newcomers to try and get away with it unless you're going to pay their penalties or serve their jail time."

      You're not the boss so don't be telling me what to do. Just the fact you mentioned jail time proves your ignorance on the subject. Is that like when you tried o convince the newcomers it was the clerk's fault your lottery ticket expired?

      If an LP member cashes $1200 a month for a year in unreported lottery winnings, I'll show them the memorandum from the IRS Office of the Chief Counsel just like last year when I showed the memorandum from the Republican party calling for abolishing all Internet gambling. You're obviously still ticked off at me because I showed proof where Mitt Romney and the Republican Party wanted to bully all the Americans.

      If anyone reads the memorandum and decides they have no lottery winnings for the year, it's their business, not mind and certainly not any business of an obviously ignorant wana-be cyber bully. Either show us your mythical law or try to bully someone else.

      "it's just the really dumb, obnoxious hicks like you that grate on people's nerves."

      Billionaire is correct; the majority of your rants are aimed at yourself.

        p4wanbi's avatar - Lottery-062.jpg
        WA
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        Posted: December 10, 2013, 2:29 pm - IP Logged

        Can we all be civil and lets talk about good fortune here? I think your times should be well spent doing something esle rather than having a verbal fight that has no point. Just have fun and enjoy the snow :).

        playing what can be afforded...spend half of what was reclaimed.

          rdgrnr's avatar - walt
          Way back up in them dadgum hills, son!
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          April 28, 2009
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          Posted: December 10, 2013, 2:57 pm - IP Logged

          Can we all be civil and lets talk about good fortune here? I think your times should be well spent doing something esle rather than having a verbal fight that has no point. Just have fun and enjoy the snow :).

          I agree p4wanbi.

          Don't disagree with Stink47 though.

          He'll stalk you forever.

          He can't be reasoned with.

            rdgrnr's avatar - walt
            Way back up in them dadgum hills, son!
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            April 28, 2009
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            Posted: December 10, 2013, 3:04 pm - IP Logged

            You're still doing what you do best; trying to be a cyber bully using juvenile name calling when you can't prove something. 

            "You won't listen to logic or common sense and you especially won't listen to the law"

            You haven't shown any law, Dummy; you're just babbling on because there is no law defining "gambling winnings".

            "In applying § 165(d), it is necessary to interpret the words “gains” and “losses”
            from wagering transactions.  These terms are not defined in the Code, regulations,
            legislative history, or published guidance.  As discussed below, courts have differed in
            interpreting the terms."   -----   www.irs.gov/pub/irs-utl/am2008013.pdf 

            "don't go advising newcomers to try and get away with it unless you're going to pay their penalties or serve their jail time."

            You're not the boss so don't be telling me what to do. Just the fact you mentioned jail time proves your ignorance on the subject. Is that like when you tried o convince the newcomers it was the clerk's fault your lottery ticket expired?

            If an LP member cashes $1200 a month for a year in unreported lottery winnings, I'll show them the memorandum from the IRS Office of the Chief Counsel just like last year when I showed the memorandum from the Republican party calling for abolishing all Internet gambling. You're obviously still ticked off at me because I showed proof where Mitt Romney and the Republican Party wanted to bully all the Americans.

            If anyone reads the memorandum and decides they have no lottery winnings for the year, it's their business, not mind and certainly not any business of an obviously ignorant wana-be cyber bully. Either show us your mythical law or try to bully someone else.

            "it's just the really dumb, obnoxious hicks like you that grate on people's nerves."

            Billionaire is correct; the majority of your rants are aimed at yourself.

            I started to read your post but it's just more of the same kettle of fish, isn't it?

            "Billionaire is correct"

            LOL, how apropos of you to quote him quoting me.

            How is he anyway?

              mikeintexas's avatar - tx avatar-1.gif
              Texas Panhandle
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              December 20, 2012
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              Posted: December 10, 2013, 4:25 pm - IP Logged

              Mike was talking about Uncle Sam, meaning the IRS/Feds, and that is the same for all states. Also was referring to Mega Millions, which is a jackpot game with cash and annuity options.

              For a jackpot game with annuity and cash option, you have up to 60 days to choose your payment option, and at that point your are "actually" paid. So for instance if you won Mega Millions JP in October 2013, but claimed in January 2014, your winnings would be in 2013 because your choice expired and you had automatic annuity chosen for you in December.

              Or let's say you won Fantasy 5 JP today, which is cash only with no annuity option, but waited till January to claim the prize, and you lived next door to the lottery office. The IRS may argue you were "constructively" paid in December, not January, because you had plenty of time to walk next door and claim your prize with the usual waiting period.

              That's sorta what I was thinking, too. I always try to find an answer on my own but either it wasn't on the 'net or I wasn't phrasing the question properly...or didn't search enough of the results.

              My question came about from looking at the calendar and thinking that if I DID win tonight's MM, there would be no way I could claim it until after the start of the new year.*   I guess the ideal time to win a large sum of money is at the first of the year so you could use the 14.6% of the tax balance you owe (27 million in tonight's drawing)....BUT, anytime would be a great time to win and I wouldn't shed one tear if I couldn't use some of Uncle Sam's money for a while.  Still would be sweet, though.

              *After looking at the date, I was also reminded that even though I'm now divorced, I was married on Dec. 16th and got to count  my new bride as an exemption on my taxes for that year.  Biggest return I ever got...and biggest mistake I ever made, getting married.( at least to her)  The extra money on my income tax return sure helped, too, because whoever said "two can live as cheaply as one" must've been the one.


              A people that elect corrupt politicians, impostors, thieves and traitors are not victims...but accomplices.
               - George Orwell

                Jon D's avatar - calotterylogo
                Los Angeles, California
                United States
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                January 5, 2011
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                Posted: December 10, 2013, 7:12 pm - IP Logged

                That's sorta what I was thinking, too. I always try to find an answer on my own but either it wasn't on the 'net or I wasn't phrasing the question properly...or didn't search enough of the results.

                My question came about from looking at the calendar and thinking that if I DID win tonight's MM, there would be no way I could claim it until after the start of the new year.*   I guess the ideal time to win a large sum of money is at the first of the year so you could use the 14.6% of the tax balance you owe (27 million in tonight's drawing)....BUT, anytime would be a great time to win and I wouldn't shed one tear if I couldn't use some of Uncle Sam's money for a while.  Still would be sweet, though.

                *After looking at the date, I was also reminded that even though I'm now divorced, I was married on Dec. 16th and got to count  my new bride as an exemption on my taxes for that year.  Biggest return I ever got...and biggest mistake I ever made, getting married.( at least to her)  The extra money on my income tax return sure helped, too, because whoever said "two can live as cheaply as one" must've been the one.

                Yeah, you'd have a bit of an advantage for a while. But knowing greedy bastids at IRS, they might try to close that loophole as jackpots increase nowadays, and add another progressive tier or two to automatic withholdings, like over $10,000,000 lottery win is subject to automatic 39% withholding.(they leave you 0.6% at least...)

                Uh oh, shouldn't have said that. The NSA is probably watching this site,(via Google) and they share info with the IRS. Don't wanna give them ideas. Blue Thinking

                  mikeintexas's avatar - tx avatar-1.gif
                  Texas Panhandle
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                  Posted: December 10, 2013, 9:37 pm - IP Logged

                  Yeah, you'd have a bit of an advantage for a while. But knowing greedy bastids at IRS, they might try to close that loophole as jackpots increase nowadays, and add another progressive tier or two to automatic withholdings, like over $10,000,000 lottery win is subject to automatic 39% withholding.(they leave you 0.6% at least...)

                  Uh oh, shouldn't have said that. The NSA is probably watching this site,(via Google) and they share info with the IRS. Don't wanna give them ideas. Blue Thinking

                  Gosh, I was figuring that if you got a "paltry" 1% on 27 million, that would give you somewhere in the vicinity of $740/day in interest (not counting taxes)  Coincidentally, 27 million is the amt. David Edwards won and wasted in a short time, then died penniless.  (the discussion in that thread on Lottery News forum got a little heated.   One million would've been too much money for him to handle and 27 million wasn't enough)

                  I appreciate your answer, but I'd really like to find out for sure, just for my own edification.   On one hand, I agree w/ you that the date you won would be when the IRS (spit!) would say constituted the year you needed to pay taxes on it, but then again, it seems lke it would be WHEN you got the money that the clock started ticking on your tax liability.  After all, they wouldn't take out the initial 25% until you went to the lottery claim center.  I dunno, really would like to know f/ sure, though.  I do know Uncle Sam ain't my favorite uncle these days.

                  I used to belittle conspiracy people, then I realized you're not really paranoid if people really ARE watching you.

                  EDIT: re-reading your previous answers, I got you mixed up w/ another poster.  I believe you said the date when you collected your winnings would be the year you'd pay taxes on it, in this case not until April 2015. (right?)

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                    Kentucky
                    United States
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                    February 14, 2006
                    7310 Posts
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                    Posted: December 11, 2013, 1:10 am - IP Logged

                    Can we all be civil and lets talk about good fortune here? I think your times should be well spent doing something esle rather than having a verbal fight that has no point. Just have fun and enjoy the snow :).

                    "Can we all be civil and lets talk about good fortune here?"

                    Good fortune is playing a double pick-4 combo multiple $1 tickets and finding out it won. What we have here are people who apparently never experienced good fortune so they create some BS about the U.S. tax codes.

                    "I think your times should be well spent doing something esle rather than having a verbal fight that has no point."

                    At least this topic applies to lottery games. Some people believe the IRS might be monitoring this site and makes me wonder why some members are asking questions like: 

                    "Do you total all your yearly lottery winnings (including all $1 and $2 winners) and enter the total on line 21 form 1040? And do you deduct your lottery losses using Schedule "A"?

                      rdgrnr's avatar - walt
                      Way back up in them dadgum hills, son!
                      United States
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                      April 28, 2009
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                      Posted: December 11, 2013, 5:04 am - IP Logged

                      I started to read your post but it's just more of the same kettle of fish, isn't it?

                      "Billionaire is correct"

                      LOL, how apropos of you to quote him quoting me.

                      How is he anyway?

                      Hello?

                      Hello?

                      Hello?

                      Hmmm... that's funny, all I hear is crickets...

                        mikeintexas's avatar - tx avatar-1.gif
                        Texas Panhandle
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                        December 20, 2012
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                        Posted: December 11, 2013, 5:20 am - IP Logged

                        "Billionaire is correct"

                        I figured I'd win the lottery before I ever heard that.