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Claiming a Ticket...

Topic closed. 5 replies. Last post 2 years ago by PrisonerSix.

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CALI
Afghanistan
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November 6, 2011
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Posted: May 30, 2015, 5:01 am - IP Logged

 

If a lotto group has no Trust, how would 1 designated person claiming the ticket disseminate funds to the members in a group play? Would the 1 person be responsible for the entire different state taxes of that group.

 

(HIT THE BIG ONE, OR BUY A SKI MASK)

 

    mypiemaster's avatar - 2015021003pileofcash
    JACKPOT HUNTER

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    April 2, 2013
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    Posted: May 30, 2015, 5:49 am - IP Logged

    That depends on what State you live in and their rules. Some states will issue only one check to a group and some will issue multiple checks within reason to a group. With all that money, your group needs to find the best atty/acct/financial planner to worry about such "trivial" matters, while you bask in the sunshine of your windfall. That way you make sure that the IRS does not become your group's best uncle, that never goes away.

    Seek and ye shall find -Matt. 7:7 ...Ask and ye shall receive -John 16:24 ...Give and it shall be given unto you -Luke 6:38 ...Be careful what you ask for!!! -Mypiemaster 1:1

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      New Member

      United States
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      May 6, 2015
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      Posted: May 30, 2015, 5:52 am - IP Logged

      The Colorado Lottery has this for the question on what is the best way to share a prize.

       

      "Your bank, attorney or certified financial advisor can give you advice about this option. You can choose to share the tax liability of the prize by having all prize winners complete IRS tax form 5754 that will dictate how to share the liability for certain gambling winnings. If you decide to do this, one person is designated as the prize recipient, signs the winning ticket, and distributes the money. You’ll need to provide the names, addresses, social security numbers, and the gross amount to be distributed to each person.You may also consider building a trust fund. Again, talk to your bank, attorney or financial advisor about this option."

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        NY
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        October 16, 2005
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        Posted: May 30, 2015, 11:47 am - IP Logged

        "You’ll need to provide the names, addresses, social security numbers, and the gross amount to be distributed to each person."

        That's the important part. If the lottery only has one person's name they'll withhold 25% federal taxes in that person's name. The only way to have the taxes credited to multiple people is to give the lottery everybody's name or create some kind of legal entity to collect a single check.

        In theory a single person could collect the prize and distribute shares to everybody else, but all of the taxes would be withheld and credited to them. That would leave them with perhaps 70% of the prize and the obligation to pay everybody else, which might be impossible with only 70% of th total prize. They'd then have to file a return showing those distributions reducing their taxable income and wait for their very big tax refund.

          kreative1's avatar - flower2
          NE PA
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          Posted: May 30, 2015, 1:55 pm - IP Logged

           

          If a lotto group has no Trust, how would 1 designated person claiming the ticket disseminate funds to the members in a group play? Would the 1 person be responsible for the entire different state taxes of that group.

          In Pa, the claim form has a box for single winner or group winners to be checked and then the info filled in.

          I wondered the same thing and asked where I buy tickets at..I don't play in a group but know some do

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            Baton Rouge, LA
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            May 7, 2004
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            Posted: May 30, 2015, 5:14 pm - IP Logged

            Every state has its own rules. In Louisiana, they will only issue one check, but what they will do is allow the winner to complete a form IRS 5754, which will designate how much each winner gets and how much tax will be withheld on each winner, and the lottery will issue a W-2-G for each winner. The person collecting the check is responsible for distributing the prize money for each winner.

            Prisoner Six

            "I am not a number, I am a free man!"