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The Biggest Mistake that Lottery Players Make (I SEE this!)

Topic closed. 23 replies. Last post 1 year ago by PrisonerSix.

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Dallas,TX
United States
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March 1, 2014
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Posted: September 16, 2015, 12:05 am - IP Logged

There is a BIG mistake that Lottery players make every day, in every State, City, wherever there is Lottery.  I see this happen all the time and I sometimes see a person make this mistake and I will sometimes make their mistake my gain.  I would say 95% of all people make this mistake and don't even know they are doing it.  As a person who has wagered for 25-30 years, I know NOT to do this and I sometimes mention it when I see someone do this.

AND - it really doesn't have much to do with the Lottery.  What is this big mistake?

Throwing away losing tickets!  You NEVER want to do this, because it will (or can) cost you a lot of money.  How?  TAXES.

See, most people don't know that you can USE those losing tickets for tax purposes.  Say you play once a week or every day.  You lose, and like most, you toss your losing ticket (ANY kind of gambling ticket) on the ground, in the trash.  I see them everywhere - and, I'll sometimes pick them up.  Why?

Because of a mostly unknown tax law.  Say you win a big Jackpot OR you have combined wins that have really added up.  Let's say you have won $30,000 in 2015.  And, you went ahead and paid the 25% tax when you collected your winnings, when you got your check.  Well, you know that 25% (on $30,000 it would be around $7500) you paid on winnings?  You can get some of that money BACK!  How?  With the losing tickets being claimed on your taxes.

Under IRS Tax Law (some of you already know this), you are allowed to take write-offs on losses up to the amount of winnings for that year.  You won't get it all back, but you could get a healthy amount back.  This really works well especially if you have lost MORE than you have won.  So, you win $30,000 for that year, but say you lost around $40,000 in gambling losses.  Any amount, you lost more than you won for the year.  Well, that's when those losing tickets help you out.  So, Joe lost 10 Grand and won $5000 = He can report losses of $5000 and his winnings are shown at $5000, so he can use those tickets as proof to reduce his taxes or improve his tax return, sometimes significantly.  You always want to keep those tickets - just thrown 'em in a box, and if you win, you will be SO glad you have them.  You get some of that tax back and losing tickets are the way to keep more of your winnings.

It does add up and, when you keep those Scratch Off tix, Drawings and other gambling tickets, you will know how much you have lost.  Then, you need to have winnings (and proof) to make it work for your taxes. It DOES help.  And, it can take the sting out of the 25% you are taxed on your Lotto Winnings. Any CPA or Tax Specialist can help you with this.

So, that is the biggest, most common mistake I see people make with Lottery tickets.  If you don't play much, keep 'em anyway.  Because, you never know when you might win - then you will need (or want to have) some losers to help get your taxed money back.  You won't get all of it, but you can claim losses up to the amount of your winnings.  So, think about it next time you buy $25, $50 worth of tickets and if they lose, throw them in a box in the closet.  That way, if you do need them, you will have them.  And, if you don't?  Toss them out later.  Just remember this - you must have proof of both winners and losers - IRS will check.  Hope this helps.  And, if you see a $50 card on the ground?  Hey, grab it and toss it in your box.  You never know, it might end up helping you.  But, try and make sure tickets are your tickets and not other people's tickets.  Losers aren't good, but in this case, you can recoup some of your money when they took 25% out of your winner.  Hope you don't have a lot of losers = but, if you do, keep them - don't throw them away.

Cash Crown

    Coin Toss's avatar - shape barbed.jpg
    Zeta Reticuli Star System
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    Posted: September 16, 2015, 12:20 am - IP Logged

    CashCrown,

    "See, most people don't know that you can USE those losing tickets for tax purposes"

    Most people on this board know this.

    Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

    Lep

    There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

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      CALI
      Afghanistan
      Member #118735
      November 6, 2011
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      Posted: September 16, 2015, 12:52 am - IP Logged

      Never cared about this <snip>. I work overseas and dont have to pay any Taxes

      This post has been automatically changed by the Lottery Post computer system to remove inappropriate content and/or spam.

       

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

       

        RedStang's avatar - tallman zps6gf4inoc.jpg
        NY
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        January 21, 2012
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        Posted: September 16, 2015, 1:07 am - IP Logged

        Can you use tickets from 10yrs ago. I see them for sale on Ebay.

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          New Member
          Fremont
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          September 15, 2015
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          Posted: September 16, 2015, 3:04 am - IP Logged

          With all due respect..

          Who's to say that you don't find a lot of thrown away tickets.  I can find and organize thousand of dollars worth, say they were mine. 

          wCm

            savagegoose's avatar - ProfilePho
            adelaide sa
            Australia
            Member #37136
            April 11, 2006
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            Posted: September 16, 2015, 4:07 am - IP Logged

            uif i was losing 10k a year on lotto, i would have bigger problems than taxes. but yeah if taxes are due, and   money can be claimed,  for those small wins   like $5k , it  would take some of the  bite out. on a big pot win like $100M i dont think anyone would care. Im just glad we dont have to deal with that here.

            2014 = -1016; 2015= -1409; 2016  = -1171; 2017 = ?  TOT =  -3596

            keno historic = -2291 ; 2015= -603; 2016= -424; 2017 = ? TOT = - 3318

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              Wyomissing, PA
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              Posted: September 16, 2015, 7:55 am - IP Logged

              For relatively low amounts, such as under $50K, the IRS may simply accept the tax filer's claim of having gambling losses up to that amount. And, if pressed, having losing lottery tickets in possession supporting the claim of such losses may be sufficient. However, if the IRS chooses to press the issue further, the auditor will want to see a detailed journal of all wins, regardless of amount, and losses. How many here keep such detailed records?...

              For those who gamble very heavily, better have that journal handy along with the losing tickets - you may need it. For most all lottery players, keeping a journal is well worth the effort, since the house advantage is so large. Even with some decent wins, the player will still likely come out fine documenting everything honestly. The same can't be said for casino gambling, in which keeping detailed records often work against the player.

              To reiterate, for most casual lottery players, a box full of random losing tickets may be good enough for the IRS for smallish jackpot wins, such as a $10K here and there, if even it comes to that. However, ideally, keep a journal of all wins and losses to go along with those losing tickets.

                mikeintexas's avatar - tx avatar-1.gif
                Texas Panhandle
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                December 20, 2012
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                Posted: September 16, 2015, 9:23 am - IP Logged

                I don't throw my losing tickets away;  instead, I use them as wallpaper.

                So far I've done the living room, the bedroom and am about halfway through with the utility room.

                  rcbbuckeye's avatar - Lottery-043.jpg
                  Texas
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                  October 23, 2007
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                  Posted: September 16, 2015, 9:35 am - IP Logged

                  I don't throw my losing tickets away;  instead, I use them as wallpaper.

                  So far I've done the living room, the bedroom and am about halfway through with the utility room.

                  I think I'll suggest that to my wife. "Hey Babe, I got a decorating idea".

                  If you don't see me on LP anymore, you'll know why.

                  CAN'T WIN IF YOU'RE NOT IN

                  A DOLLAR AND A DREAM (OR $2)

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                    United States
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                    December 3, 2014
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                    Posted: September 16, 2015, 9:52 am - IP Logged

                    I don't throw my losing tickets away;  instead, I use them as wallpaper.

                    So far I've done the living room, the bedroom and am about halfway through with the utility room.

                    How about insulation? ... maybe tie them in bundles and stuff them in the wall or fill up the attic.

                    Probably the most expensive insulation money can buy !

                    CW

                      zephbe's avatar - animal butterfly.jpg
                      South Carolina
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                      Posted: September 16, 2015, 10:03 am - IP Logged

                      How about insulation? ... maybe tie them in bundles and stuff them in the wall or fill up the attic.

                      Probably the most expensive insulation money can buy !

                      CW

                      or decoupage a wooden coffee table in my den!!

                        zinniagirl's avatar - flower avatar_0026.jpg
                        nc
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                        Posted: September 16, 2015, 10:27 am - IP Logged

                        Jmine are shredded and used as kitty litter....

                          Coin Toss's avatar - shape barbed.jpg
                          Zeta Reticuli Star System
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                          Posted: September 16, 2015, 1:27 pm - IP Logged

                          With all due respect..

                          Who's to say that you don't find a lot of thrown away tickets.  I can find and organize thousand of dollars worth, say they were mine. 

                          wCm

                          You can say they were yours but that's not good enough.

                          Just the losing tickets isn't enough, you need a journal too, game played, $ amount, date, and the tickets.

                          That's why you can't make a score on Dec. 29th, go to a racetrack on the 30th and scap up thousand of dollars of losing tickets all dated the same day.

                          Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

                          Lep

                          There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

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                            Dallas,TX
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                            Posted: September 16, 2015, 1:36 pm - IP Logged

                            Coin - Yes, agreed.  I know most on this site know about this.  But, with the amount of losing tickets I see on every corner, street (and seeing people toss them in stores) there are a lot of people who don't - just trying to help - even one person.  Plus, those who don't know this probably are not on this board and probably aren't going to need it anyway.  Again, you might need them if you participate in other gambling, besides Lotto.

                            As for keeping a Journal?  That depends on the IRS Examiner.  I've had one tell me I had to have the actual ticket (from a Racing win) and my CPA recommends having the actual ticket(s). But, if you use the Form for Gambling, and keep a thorough Journal, that should be sufficient.  Especially if you play Lotto + Racing + Sports and Cards. IRS doesn't care about your activity - only that they get any monies coming to them or if you have 'excessive' losses, etc. I had to claim the Lotto Prizes (avg value $600) from the 2nd Chance games and I had about 7 total (Star Wars, COTA sets, and game Jersey items).  I donated a game Jersey to Wife's charity, so got to claim donation - if it had been J.J. Watts jersey?  Uh, no way.  But, it was Texan's Duane Brown. 

                            There is a story on a guy in Texas who had an incredible claim on his losses that there was a story about it.  It's on The Lotto Report (I don't know how it ended for him, jail or not).  And, yes of course, if you see tix on the ground, pick 'em up.  Someone has to 'clean up'. :)

                            CC

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                              Dallas,TX
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                              Posted: September 16, 2015, 1:43 pm - IP Logged

                              There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

                              Having been a book (years ago before Internet), this is a very truthful statement.  It's amazing when you have 15-20 players, and almost all of them would be on the same team (NFL or College) - it seemed to always lose.  I used to lay-off some to a friend, but soon realized that the BEST way is just put all the action in one hat and sit back.  A 100% accurate statement (from experience).

                              CC