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Winning a US Lottery in the UK

Topic closed. 5 replies. Last post 13 years ago by Todd.

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New Member
Wolverhampton
United Kingdom
Member #2056
August 13, 2003
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Posted: August 13, 2003, 5:06 am - IP Logged

Can anyone tell me the laws governing tax on lottery wins online. I've been thinking about playing Mega Millions in the UK using betslips.

If I play betslips and win, what tax would I pay? We don't pay any tax on gambling or lottery winnings in the UK, however, I know winnings in the US are subject to witholding and state taxes. I know we have a tax treaty with the US, but I'm not sure what it says about lottery wins. Could anyone enlighten me.

Many thanks.

Astrix.


    United States
    Member #379
    June 5, 2002
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    Posted: August 13, 2003, 7:23 am - IP Logged

    Yes, you have to pay taxes on US lottery wins.                        Another caution-if you want a lump sum, make sure you don't get stuck with annuity payments.

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      Wolverhampton
      United Kingdom
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      August 13, 2003
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      Posted: August 13, 2003, 7:44 am - IP Logged

      I would like a lump sum not the annuity option.

      How does it work, do they ask you which option you want and then you choose before you get the check?

        Todd's avatar - Cylon 2.gif
        Chief Bottle Washer
        New Jersey
        United States
        Member #1
        May 31, 2000
        23346 Posts
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        Posted: August 13, 2003, 9:35 am - IP Logged

        That question has been

         

        Check the State Lottery Report Card
        What grade did your lottery earn?

         

        Sign the Petition for True Lottery Drawings
        Help eliminate computerized drawings!

          vincejr's avatar - wallace
          Somewhere in VA
          United States
          Member #1944
          July 29, 2003
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          Posted: August 15, 2003, 6:23 pm - IP Logged

          It depends on the state you are playing in as to whether the MM ticket is "purchased with the lump sum cash option". In Virginia, a MM (or LS) jackpot winner has 60 days from the day they submit the winning jackpot ticket to the lottery to choose whether they want cash option or annuity. Of course, since the lottery won't disburse a check until the choice is made, virutally every winner will make the choice at time of claim. But, theoretically, they could submit the claim and take the 60 days to make their decision.

          As for the original question, the total amount of taxes withheld would depend on the state that the ticket is purchased in. Most of the MM ticket purchasing services buy their tickets in New Jersey because NJ does not tax lottery winnings on a state level, so only the federal tax is withheld. However, as to the total tax that actually ends up being paid, I would consult a CPA who has experience in foreign nationals and the US Tax Code.

            Todd's avatar - Cylon 2.gif
            Chief Bottle Washer
            New Jersey
            United States
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            May 31, 2000
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            Posted: August 15, 2003, 7:52 pm - IP Logged

            vincejr,

            If you're referring to my post, I am only talking about betslips.com, which always buys lump-sum option.  It has no bearing on the state.

             

            Check the State Lottery Report Card
            What grade did your lottery earn?

             

            Sign the Petition for True Lottery Drawings
            Help eliminate computerized drawings!