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How would you cash them?

One at a time so as to avoid taxes

[ 37 ]

[ 77.1% ]

At the lottery office - I always pay my taxes

[ 5 ]

[ 10.4% ]

At the lottery office - Too Chicken to get caught

[ 6 ]

[ 12.5% ]

Total valid votes

[ 48 ]

Discarded votes

[ 3 ]

sully16

25

Ringleader

Michigan
United States
Member #81,736
October 28, 2009
160,832 Posts
Online

Feb 26, 2013, 11:11 pm

Quote: Originally posted by onlymoney on Feb 26, 2013
No it's not. I already read the section in the IRS documents referring to gambling income. ALL income is taxable.

We don't pay any taxes on prizes under 500 here in Michigan, they don't take names and we don't fill out forms, I won 700 once and had to go to the lottery, I filled out the IRS form and when it came time to do my taxes, I didn't have to pay tax on it because I could prove the loss.
mjwinsmith

100

United States
Member #391
June 8, 2002
18,280 Posts
Online

Feb 26, 2013, 11:12 pm

Any amount won is TAXABLE income, now you are allowed to deduct YOUR LOSES from your winnings.

Usually amounts up to $600.00 can be cashed at the Lottery agents store, over that amount will need to be claimed at a Lottery Office in which they will take down your information, (Soc. Sec. No etc.)

If you had $100,000.00 worth of tickets valued at $500.00 each (X200) and cashed them in one at a time over a period of time you still have $100,000.00 of income which is reportable. Again, you are allowed to deduct your gambling loses against your wins.

I would suspect that when you cash in the 200 tickets you are doing this over a span of days/weeks maybe several a day. So say you cash 2 a day, that would take you 100 days to cash all of the tickets at say one store. If you went to several stores then you can reduce the time limit. In New York state you have I believe up to 45 days to cash the tickets in at the Lottery Retailer, after that time you will need to file a claims at the Lottery Regional Office.

Let's say you did cash in all of the tickets within the time limit and got the cash, you are still liable to pay tax on the net amount of gambling wins over gambling loses for the year in question. If they catch you or not is another story, LOL (Smile) - - WINK - WINK!

>Michael

"What Lie is for today, is What TRUTH will seek tomorrow"

"If You Have A Democracy, Don't Try And Replace It"

mjwinsmith
onlymoney

United States
Member #128,782
June 2, 2012
5,431 Posts
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Feb 26, 2013, 11:14 pm

Quote: Originally posted by Stack47 on Feb 26, 2013
According to state lottery rules, players can cash $500 value tickets without getting a W-2G so it seems like you could legally cash all 200 tickets at various stores. I'd try to cash about 50 of them, but would cash the rest at lottery headquarters. That way you could avoid any potential IRS questions.

WRONG. What part don't you get? Doesn't matter what state you live in.

http://www.irs.gov/taxtopics/tc419.html
onlymoney

United States
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June 2, 2012
5,431 Posts
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Feb 26, 2013, 11:18 pm

Quote: Originally posted by sully16 on Feb 26, 2013
We don't pay any taxes on prizes under 500 here in Michigan, they don't take names and we don't fill out forms, I won 700 once and had to go to the lottery, I filled out the IRS form and when it came time to do my taxes, I didn't have to pay tax on it because I could prove the loss.

I know, but some are obvioulsly asking questions because they're not sure. And i'm only educating them. I do ths often BTW. lol Real Life i mean.
sully16

25

Ringleader

Michigan
United States
Member #81,736
October 28, 2009
160,832 Posts
Online

Feb 26, 2013, 11:23 pm

Quote: Originally posted by onlymoney on Feb 26, 2013
I know, but some are obvioulsly asking questions because they're not sure. And i'm only educating them. I do ths often BTW. lol Real Life i mean.

It would be a nightmare trying to track down everyone who won less then 500 through out the year, let's not give the greedy gov. any ideas.
onlymoney

United States
Member #128,782
June 2, 2012
5,431 Posts
Offline

Feb 26, 2013, 11:23 pm

Quote: Originally posted by mjwinsmith on Feb 26, 2013
Any amount won is TAXABLE income, now you are allowed to deduct YOUR LOSES from your winnings.

Usually amounts up to $600.00 can be cashed at the Lottery agents store, over that amount will need to be claimed at a Lottery Office in which they will take down your information, (Soc. Sec. No etc.)

If you had $100,000.00 worth of tickets valued at $500.00 each (X200) and cashed them in one at a time over a period of time you still have $100,000.00 of income which is reportable. Again, you are allowed to deduct your gambling loses against your wins.

I would suspect that when you cash in the 200 tickets you are doing this over a span of days/weeks maybe several a day. So say you cash 2 a day, that would take you 100 days to cash all of the tickets at say one store. If you went to several stores then you can reduce the time limit. In New York state you have I believe up to 45 days to cash the tickets in at the Lottery Retailer, after that time you will need to file a claims at the Lottery Regional Office.

Let's say you did cash in all of the tickets within the time limit and got the cash, you are still liable to pay tax on the net amount of gambling wins over gambling loses for the year in question. If they catch you or not is another story, LOL (Smile) - - WINK - WINK!

>Michael

Any amount won is TAXABLE income

http://www.irs.gov/taxtopics/tc419.html

THANK YOU !
onlymoney

United States
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June 2, 2012
5,431 Posts
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Feb 26, 2013, 11:28 pm

Quote: Originally posted by sully16 on Feb 26, 2013
It would be a nightmare trying to track down everyone who won less then 500 through out the year, let's not give the greedy gov. any ideas.

Oh, have no worries. They already thought of that. The person they audit must have a mid to high profile in order to qualify. Too many resources with too much expense. Your everyday Joe shouldn't worry. I know an Insider.
grwurston

100

Same digits. Different games.

United States
Member #90,245
April 24, 2010
16,864 Posts
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Feb 26, 2013, 11:44 pm

Quote: Originally posted by onlymoney on Feb 26, 2013
Any amount won is TAXABLE income

http://www.irs.gov/taxtopics/tc419.html

THANK YOU !

So, I guess this means that if you bought a mega millions ticket for tonight and you hit the bonus ball for $2.00 you're going to report it on your taxes next year right?

When playing the lottery the thing that should matter the most is: Are you winning more than you spend? Good Luck!!!
onlymoney

United States
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June 2, 2012
5,431 Posts
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Feb 26, 2013, 11:47 pm

Quote: Originally posted by grwurston on Feb 26, 2013
So, I guess this means that if you bought a mega millions ticket for tonight and you hit the bonus ball for $2.00 you're going to report it on your taxes next year right?

I'm so tired of winking. My friends are laughing at me as i write this. They think I have twitches. Thanks a lot gwurston...lol
grwurston

100

Same digits. Different games.

United States
Member #90,245
April 24, 2010
16,864 Posts
Offline

Feb 27, 2013, 12:05 am

Quote: Originally posted by onlymoney on Feb 26, 2013
I'm so tired of winking. My friends are laughing at me as i write this. They think I have twitches. Thanks a lot gwurston...lol

I was just checking... don't hurt your eyes.

When playing the lottery the thing that should matter the most is: Are you winning more than you spend? Good Luck!!!
onlymoney

United States
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June 2, 2012
5,431 Posts
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Feb 27, 2013, 12:21 am

Quote: Originally posted by grwurston on Feb 27, 2013
I was just checking... don't hurt your eyes.
HoLeeKau

Idaho
United States
Member #94,277
July 17, 2010
2,523 Posts
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Feb 27, 2013, 10:30 am

Quote: Originally posted by onlymoney on Feb 26, 2013
I know, but some are obvioulsly asking questions because they're not sure. And i'm only educating them. I do ths often BTW. lol Real Life i mean.

I thought about it, but honestly I wonder if it's worth it. If they wanted to know, they'd already have checked wouldn't they? You can walk into any tax office this time of year and get an answer to that question. Sometimes, ignorance is bliss.
HoLeeKau

Idaho
United States
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July 17, 2010
2,523 Posts
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Feb 27, 2013, 10:37 am

Quote: Originally posted by sully16 on Feb 26, 2013
It would be a nightmare trying to track down everyone who won less then 500 through out the year, let's not give the greedy gov. any ideas.

That's why I made the example worth $100,000. That is worth the IRS's time to track down. In a city the size of Boise, you'd have to go to the same stores a few times to get them all cashed, hence more risk of a snoopy clerk deciding to turn you in.

I wonder if the lottery cooperates with the IRS? I wonder if they'd release their video of who bought the tickets if the IRS asked, and find out you had all 200 winners? That's assuming they have cameras in the machines like ATMs do.
HoLeeKau

Idaho
United States
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July 17, 2010
2,523 Posts
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Feb 27, 2013, 10:41 am

Quote: Originally posted by rdgrnr on Feb 26, 2013
Are you saying that "a friend" (wink wink, nudge nudge) (say no more, say no more) of yours has these tickets?

No "friend" (wink, wink, nudge nudge) with tickets yet, but I'm hoping to get a "friend" (wink, wink, nudge nudge) with tickets at some point and wish to be prepared.
Ronnie316

100

United States
Member #116,261
September 7, 2011
20,244 Posts
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Feb 27, 2013, 10:44 am

Quote: Originally posted by HoLeeKau on Feb 26, 2013
Say you had 200 separate pick 3 tickets, each worth $500 for a total of $100,000. After state and fed taxes, most of us would wind up with $70K or less, putting a pretty big dent in our windfall. Would you have the guts to cash each one separately to avoid the taxes? Or would you be afraid of getting caught by the IRS?

If you'd cash them separately, what steps would you take to avoid getting caught and indicted for tax evasion?

Is this a trick question?

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