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When is a winning ticket considered your income?

Topic closed. 28 replies. Last post 9 months ago by TheMeatman2005.

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LiveInGreenBay's avatar - driver
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Posted: April 15, 2016, 1:33 pm - IP Logged

If you bought a winning  lottery ticket in December 2015 and didn't turn it in until January 2016, is that considered 2015 or 2016 income?  I would guess 2015 but technically you don't have the money until 2016.

Never give up.  Banana

    Raven62's avatar - binary
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    Posted: April 15, 2016, 1:39 pm - IP Logged

    Seems obvious!

    A mind once stretched by a new idea never returns to its original dimensions!

      Raven62's avatar - binary
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      Posted: April 15, 2016, 1:43 pm - IP Logged

      You Win a Jackpot in December 2015, but you neglect to cash in the Ticket and theTicket Expires. Do you still Pay Taxes on the Winnings you didn't Collect?

      A mind once stretched by a new idea never returns to its original dimensions!

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        Posted: April 15, 2016, 2:32 pm - IP Logged

        You became entitled to it once your ticket won. So that would be the point it becomes income, I'd think.

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          Posted: April 15, 2016, 3:08 pm - IP Logged

          You became entitled to it once your ticket won. So that would be the point it becomes income, I'd think.

          I would think it becomes income when you collect it, when you cash in the ticket.  You're not responsible for paying taxes on income that you never receive as winnings.  No one, including yourself, even knows that you have that money coming to you, if you lose the ticket.  So, why should you owe taxes on winnings that you have not collected yet ?? 

          Which DATE counts, according to the IRS ???  The DATE that the ticket becomes a winning ticket, or the DATE that you cash the ticket in, and the state Lottery Commission issues you a CHECK for your winnings, which is the Date that they officially record as well ???

          In a few  states, you have up to 6 months, maybe even 1 year, to cash in a winning ticket.  In those states, If you're holding a December 2015 winning ticket, but you don't cash it in until May 2016 [after Tax Day- April 15, 2016], then it should be considered income for 2016, to be reported on your 2016 Taxes, rather than 2015.

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            Posted: April 15, 2016, 3:08 pm - IP Logged

            You would be considered entitled to the winnings at the time you make the claim and for tax purposes it is income in the tax year you claim the winnings.

              Raven62's avatar - binary
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              Posted: April 15, 2016, 3:28 pm - IP Logged

              You would be considered entitled to the winnings at the time you make the claim and for tax purposes it is income in the tax year you claim the winnings.

              Right you are!

              A mind once stretched by a new idea never returns to its original dimensions!

                LiveInGreenBay's avatar - driver
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                Posted: April 15, 2016, 4:03 pm - IP Logged

                OK but not long ago I remember a news story about a couple who were going through a divorce.  The man won some money in the lottery but held the ticket until after the divorce.  After the divorce, he cashed it, she found out about it and won a percentage through a court action.  How is that possible?

                Never give up.  Banana

                  Artist77's avatar - batman14

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                  Posted: April 15, 2016, 4:09 pm - IP Logged

                  If you bought a winning  lottery ticket in December 2015 and didn't turn it in until January 2016, is that considered 2015 or 2016 income?  I would guess 2015 but technically you don't have the money until 2016.

                  It is always the year you received the money.

                  J'aime La France.

                    Artist77's avatar - batman14

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                    Posted: April 15, 2016, 4:13 pm - IP Logged

                    OK but not long ago I remember a news story about a couple who were going through a divorce.  The man won some money in the lottery but held the ticket until after the divorce.  After the divorce, he cashed it, she found out about it and won a percentage through a court action.  How is that possible?

                    Because it was money payable/accruing  to him during the marriage...he just delayed collecting it to hide assets..

                    J'aime La France.

                      Raven62's avatar - binary
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                      Posted: April 15, 2016, 4:14 pm - IP Logged

                      OK but not long ago I remember a news story about a couple who were going through a divorce.  The man won some money in the lottery but held the ticket until after the divorce.  After the divorce, he cashed it, she found out about it and won a percentage through a court action.  How is that possible?

                      Are you 21?

                      A mind once stretched by a new idea never returns to its original dimensions!

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                        Posted: April 15, 2016, 4:14 pm - IP Logged

                        OK but not long ago I remember a news story about a couple who were going through a divorce.  The man won some money in the lottery but held the ticket until after the divorce.  After the divorce, he cashed it, she found out about it and won a percentage through a court action.  How is that possible?

                        That's an interesting scenario indeed. I'm guessing the court determined the lottery ticket to be marital property because it was purchased during the time period when the couple where still legally married?

                          Raven62's avatar - binary
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                          Posted: April 15, 2016, 4:15 pm - IP Logged

                          Because it was money payable/accruing  to him during the marriage...he just delayed collecting it to hide assets..

                          Right you are!

                          A mind once stretched by a new idea never returns to its original dimensions!

                            LiveInGreenBay's avatar - driver
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                            Posted: April 15, 2016, 4:19 pm - IP Logged

                            Are you 21?

                            I wish.  And?

                            Never give up.  Banana

                              Raven62's avatar - binary
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                              Posted: April 15, 2016, 4:44 pm - IP Logged

                              I wish.  And?

                              Once you reach 21 you'll start having life experiences that teach you about such things.

                              A mind once stretched by a new idea never returns to its original dimensions!