What would the IRS do?

Reply #5

Lotto Czar — Wed, 14 Apr 2004 09:34:25 GMT

IN Pennsylvania, lottery winnings (Pa. Games, one of which is powerball) are not subject to State Income Tax. Since they are not EIT, they are also not subject to Local Wage Taxes.I wouldn't exactlly consider non earned income suspicious, but that's my opinion. I'm sure it is subject to Federal Income Taxes (depending on the source. (such asn Interests and Dividends).

Reply #4

BobP — Wed, 14 Apr 2004 02:23:46 GMT

Freedom is the almighty's gift to all the people of the world that don't have an IRS. Civilized countries have tax free lottery prizes, they're happy getting half the money up front and don't need to rip another hunk off the back end. BobP

Reply #3

bowldog — Wed, 14 Apr 2004 00:46:08 GMT

In texas you must report(redeem) winning tickets worth $600 or more at an official lottery office where you will be required to pay your appropriate taxes before you get paid. So if you can win with tickets less than $600(pick3) you can cash your winning tickets in at any store that sells lottery tickets without having to report at all. I would scan or copy every winning ticket so you will have a record of some income, so if(when) you win BIG just show them your copies. That works for me, what d... [ More ]

Reply #2

Jorli D — Mon, 12 Apr 2004 23:29:03 GMT

Any income that one does not work for is always suspicious. So my question if I were the IRS is how do you obtain income you do not work for? How does he pay rent or a mortgage, buy food, pay utilities, buy clothes, gas, or other life necessities? If he is obtaining monies from friends and family, there is still a taxable income per year, and IRS will investigate that if alerted by places you might obtain these monies from such as Western Union, Moneygram.If your family calls the money they g... [ More ]

Reply #1

Lottery_Analyst — Mon, 12 Apr 2004 17:12:58 GMT

Hi ThinkBig,Sounds

What would the IRS do?

ThinkBig — Mon, 12 Apr 2004 15:12:46 GMT

A friend asked me to post this question......A friend of mine has not worked in quite a few years, but he does have a little income which he does not work for. The IRS and state revenue dept does not tax this type of income which explains why he has not had to file income taxes. If he wins the Powerball or any state lotto, will the IRS and state Internal Revenue make a big deal as to why he hasn't filed income taxes in years or will they make a big deal as to how can he afford to play the lotto... [ More ]