State Taxes and Lotto

Reply #11

observantone — Tue, 20 Dec 2016 23:02:58 GMT

@destinycreation No you are handed a w-2 along with your check/cash and you claim that with your annual income

@grwurston thanks so much for that info, a tax lawyer i spoke to says it a little more complicated then that in that it depends on your annual income, and tax brackets exemptions etc...but i will take a look, thanks

@realtorjim you have a point believe it or not having trouble finding an attorney knowledgeable about how lotto relates to state tax, and how that works. One... [ More ]

Reply #10

weshar75 — Mon, 19 Dec 2016 05:10:57 GMT

Here in oregon when my mother won $5000 on a video lottery machine she took her winning ticket into lotto headquarters and they did nothing to check her background or debt. But that is the limit $5000 and under they do not check debt owed to state here in oregon. It was four years ago so I wonder if it has changed.-weshar75

Reply #9

HAMMY WAMMY — Mon, 19 Dec 2016 02:50:13 GMT

While the money sure would be nice to have. I say just let the state have it and get that debt paid off. In the long run when the state is no longer taking that extra money from your paycheck it will be like winning the lottery every payday

Reply #8

noise-gate — Sun, 18 Dec 2016 00:08:52 GMT

Nice to know that you observing the sage advice observantone.Do the right thing and let them have the winnings. You might sleep a little better at night. Now if anyone tells you to avoid paying your dues circumvent the authorities, pull that advice from its roots cast it into the fire. Bad luck has a way of making u-turns and heading straight for its intended target.

Reply #7

realtorjim — Sat, 17 Dec 2016 23:58:03 GMT

Not to be a downer but you better check the legal department. Intentionally having another claim a lottery prize to avoid payment of an IRS debt may land a person in a heap of trouble, and possible time in the slammer. Again, not offering legal advice, just throwing that thought and there and recommending you check with an attorney.

Reply #6

grwurston — Sat, 17 Dec 2016 19:58:44 GMT

If you go under the Quick Links on the left and click on USAMEGA, then click on the FAQ's, you can scroll down to Are Lottery Prizes Taxable. There you will see how much each state takes in taxes. Keep in mind this is in addition to the 25% the federal gov't will take.

Reply #5

destinycreation — Sat, 17 Dec 2016 19:55:03 GMT

I thought they take the taxes off the top of a lottery win of $5,000. You receive a check for the balance. If you owe the government more than you won, then you don't receive anything. But they will stop taking so much money out of your pay check, as you pay your balance owed down.

Reply #4

observantone — Sat, 17 Dec 2016 17:09:35 GMT

@music* yeas they are charging interest and thank you...

@TheMeatman2005 that's awesome advice, being that will affect their filing next year, what do you think is appropriate for their compensation on the five thousand? Thanks!

@helpmewin i am not sure that your solution although a good one is the best Christmas gift in this case

Reply #3

TheMeatman2005 — Sat, 17 Dec 2016 13:42:56 GMT

If you owe more than $5,000 to the state, they will take the money and you will still owe the taxes (on the 5k) to the state and IRS win next time you file your tax return.

The good part is it will be that much less that you will owe to the state. The bad part is you will have to come up with the amount of taxes on the win for the stae IRS next tax filing.

If you have someone you know that would be willing to cash the ticket for you, you can give it to them. But, be careful doing it this w... [ More ]

Reply #2

music* — Sat, 17 Dec 2016 11:01:27 GMT

becoming debt free is one of the first steps toward investing. Is the State charging you interest on your debt?

Congratulations on your win

Reply #1

helpmewin — Sat, 17 Dec 2016 10:10:36 GMT

I say Let them have it, you will be done with that hanging over your head, Best Christmas Gift of all wouldn't you think.

Merry Christmas and a Debt FREE New Year

State Taxes and Lotto

observantone — Sat, 17 Dec 2016 08:43:59 GMT

I won a small lotto prize that has to be claimed at a customer service center about five thousand dollars. The problem is i owe taxes greater then five thousand dollars to state, although they are collecting the debt through my employer.

So if i claim the prize that money will be gone, the state will grab it. I really could use the money, my question is do i have any options? This would be a great Christmas gift. Thank you in advance