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When is a winning ticket considered your income?

Topic closed. 28 replies. Last post 7 months ago by TheMeatman2005.

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LiveInGreenBay's avatar - driver
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Posted: April 15, 2016, 4:53 pm - IP Logged

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

Hey bud.  I'm older than you so stop posting crap.  It was an interesting topic in my opinion.  So STFU.  OK?

Never give up.  Banana

    OldSchoolPa's avatar - Lottery-057.jpg
    Gurnee, Illinois
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    Posted: April 15, 2016, 11:15 pm - IP Logged

    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?

    Unless he could prove that she was against playing the lottery and had no earnings during that time.  However, a smart man would have never let anyone know that he had won the lottery.

    Get MONEY!!! Winning a JACKPOT lottery is all the HOPE and CHANGE I desire!!!  NOW give me MONEY!US Flag

    The guy who won the presidency in 2008 really won the lottery...he is now millions richer, travels in first class style, and even has a staff that would be the envy of the richest Powerball winner (she has a staff of 2). Every night he goes to sleep, he probably plays the close of Dave Chappelle's Show: I'm rich beyatch!


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      Posted: April 15, 2016, 11:28 pm - IP Logged

      Hey bud.  I'm older than you so stop posting crap.  It was an interesting topic in my opinion.  So STFU.  OK?

      U probably nearing your end :P so old :P

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        Kentucky
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        Posted: April 15, 2016, 11:52 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.

        Having six months to cash the ticket means a player could easily pass the April 15 filing deadline. And according to this site:

        The time you actually draw income from your lottery winnings starts the tax clock. You report your winnings on your tax return in the year you receive them. You will get a W-2G form showing how much you were paid and how much was withheld. Like with your W-2 form from work, attach the W2-G to your tax return when you file.

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          NY
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          Posted: April 16, 2016, 3:20 am - 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?

          As others have said, the ticket was clearly a joint marital asset. She owned a share as soon as he bought it, and was entitled to her share of the prize once it was paid. Waiting to claim the prize was no different than already having the prize money and not admitting it.

          As far as taxes, they're based on constructive receipt. You can potentially claim the prize as soon as you can get to the lottery office and fill ot a claim form, but the ticket isn't worth anything before the lottery verifies that it's a winning ticket. You probably still don't have constructive receipt until sometime after that. If they take another 2 weeks to check to see if you owe money to the government or have past due child support you can't get the money, they're not going to authorize payment until they're done and satisfied. Until being paid is an absolute certainty you don't have constructive receipt.

          You can look here for some light reading on the subject: http://caselaw.findlaw.com/us-6th-circuit/1418784.html

            Raven62's avatar - binary
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            Posted: April 16, 2016, 3:57 am - IP Logged

            Hey bud.  I'm older than you so stop posting crap.  It was an interesting topic in my opinion.  So STFU.  OK?

            Thanks for your advice: You should take your own advice!

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

              LiveInGreenBay's avatar - driver
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              Posted: April 16, 2016, 11:10 am - IP Logged

              U probably nearing your end :P so old :P

              Not quite bigmouth.  Just old enough to know better.  Don't worry about me, just concentrate on losing your money on the lottery.  LOL

              Never give up.  Banana


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                Posted: April 16, 2016, 10:21 pm - IP Logged

                Not quite bigmouth.  Just old enough to know better.  Don't worry about me, just concentrate on losing your money on the lottery.  LOL

                No son I don't play so how can I lose but when I do I end up winning bye loser :DD

                  LiveInGreenBay's avatar - driver
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                  Posted: April 17, 2016, 8:36 am - IP Logged

                  No son I don't play so how can I lose but when I do I end up winning bye loser :DD

                  You don't play the lottery?  LOL!  Thats why you call yourself lottoking huh?  Bye bye kid.

                  Never give up.  Banana


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                    Posted: April 17, 2016, 10:36 am - IP Logged

                    You don't play the lottery?  LOL!  Thats why you call yourself lottoking huh?  Bye bye kid.

                    STFU SON

                      LiveInGreenBay's avatar - driver
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                      Posted: April 17, 2016, 3:46 pm - IP Logged

                      STFU SON

                      Last post to you lottoqueen.  Grow up.

                      Never give up.  Banana


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                        Posted: April 18, 2016, 11:18 pm - IP Logged

                        Last post to you lottoqueen.  Grow up.

                        STFU KID

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                          Arizona
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                          Posted: April 19, 2016, 8:29 pm - IP Logged

                          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?

                          If it's the case I'm remembering, the judge determined that he had acted in bad faith by concealing the ticket (a valuable asset, though not "income" yet) during divorce proceedings, and awarded the entire prize to the wife.

                            TheMeatman2005's avatar - lightening
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                            Posted: May 1, 2016, 7:07 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.

                            I'm not 100% sure, but my guess would be that the proceeds from that 2015 ticket cashed in 2016 would be 2016 income.

                            Lottery proceeds are treated differently than a pay check or commission earned.

                            The timing of taxes is based upon “constructive receipt”.  It’s just that constructive receipt does not happen before you receive your prize. 

                             

                            Party

                            The Meatman

                            “The quickest way to double your money is to fold it in half and put it in your back pocket.” Will Rogers

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