Winning a US Lottery in the UKPrev TopicNext Topic

• Astrix

  

  Wolverhampton
  United Kingdom
  Member #2,056
  August 13, 2003
  2 Posts
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  Aug 13, 2003, 5:06 am

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  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.
• CASH Only

  United States
  Member #379
  June 5, 2002
  11,296 Posts
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  Aug 13, 2003, 7:23 am

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  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.
• Astrix

  

  Wolverhampton
  United Kingdom
  Member #2,056
  August 13, 2003
  2 Posts
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  Aug 13, 2003, 7:44 am

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  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

  

  50

  Chief Bottle Washer

  New Jersey
  United States
  Member #1
  May 31, 2000
  27,935 Posts
  Online
  Aug 13, 2003, 9:35 am

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  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

  

  Somewhere in VA
  United States
  Member #1,944
  July 29, 2003
  130 Posts
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  Aug 15, 2003, 6:23 pm

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  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

  

  50

  Chief Bottle Washer

  New Jersey
  United States
  Member #1
  May 31, 2000
  27,935 Posts
  Online
  Aug 15, 2003, 7:52 pm

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  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!