Anyone here ever won over $1000 in the NY state lottery?

[C.Ann]

If so, do they deduct the taxes when you claim the money - and then again when you report it on your income taxes? (I'm assuming you need to report it on your income taxes - correct?)

TIA..

 

[robsmom]

Lottery winnings are usually taxable. (see below from tax pdf). If I read it correctly they will withhold upfront if you win more than $5000. For example, if you win $10,000 and the tax rate is 10% they will withold $1000 and send you $9000. When you file your return you need to declare the $10,000 but you also include the $1000 as taxes paid so you are not paying again. In a second example, if you won $4000 they would withhold nothing up front. When you file your return you have to declare the $4000 as income and you have paid $0 taxes. Assuming your tax rate is sill 10% you would owe an extra $400 when you pay your taxes. It really is just a matter of timing on whether you pay now or later. Also, they probably have one rate that they withhold at for everyone - usually the highest bracket amount. In the end your tax rate may be lower than that rate so you would get a partial refund.

from tax law googled:

Q: I am a resident of New York State and I won a prize in the New York State Lottery. Is the prize
payment I received subject to New York State income tax?
A: Yes. If you are a resident of New York State, your prize payment is subject to New York State
income tax if the prize payment is includable in your federal adjusted gross income for the tax
year. If you are a resident of New York City or Yonkers, the prize payment will also be subject
to the applicable city resident income taxes.
2) Q: I am a nonresident of New York State. I won a prize in

 

[robsmom]

So are you a big winner?

 

[LIGrumpyGirl]

I won $2500 once. Nothing was withheld off the top. I claimed it on my taxes BUT I also had $2500 in losing tickets to claim against that. Not sure if it evened it out - my accountant does everything but it definitely helped!!

 

[C.Ann]

Thanks!

 

[luvmarypoppins]

Well C.Ann, if you let your dsil borrow your van and you won the lottery, then how would you go to the store and cash in your winning ticket?

But if you won, congratulations!!

 

[mackeysmom]

I won $1500 on a scratch-off a few years back. They didn't withhold anything when I claimed the prize. But, like LIGrumpyGirl, I provided my accountant with losing tickets when it came time to do my taxes.

Congrats

- Laura

 

[C.Ann]

Well C.Ann, if you let your dsil borrow your van and you won the lottery, then how would you go to the store and cash in your winning ticket?

But if you won, congratulations!!

Since DD was only going to have the van for "maybe" a week - if that (but the responders chose to turn it into forever and a day - after I said the issue have been resolved - LOL), it wouldn't make any difference.. You have a full year to collect your unclaimed prizes in the NY Lottery..

I won $2500 once. Nothing was withheld off the top. I claimed it on my taxes BUT I also had $2500 in losing tickets to claim against that. Not sure if it evened it out - my accountant does everything but it definitely helped!!

I won $1500 on a scratch-off a few years back. They didn't withhold anything when I claimed the prize. But, like LIGrumpyGirl, I provided my accountant with losing tickets when it came time to do my taxes.

Congrats

- Laura

(Underlining mine..) I never knew this.. I'm lucky if I buy 2 or 3 lottery tickets a year (these were birthday gifts), but I do know someone that spends money hand over fist on lottery tickets 365 days a year and I'll bet they never knew they could claim them on their income taxes!! I'll have to call them and give them a "heads up"..

So basically they just save the losing tickets and give them to whoever does their taxes? Is that only the scratch-off's - or the ones where you pick numbers as well?

Thanks again!

 

[leight]

Congrats, C. Ann!

I think that the losing tickets can only be used as a deduction against gambling wins (but I may be wrong) or other gains. I know that my friend who did the lottery pool at work always took photocopies of all the tickets so we could use it to show a loss vs any wins-individual or as the group.

 

[Swan4Me]

I won $2500 once. Nothing was withheld off the top. I claimed it on my taxes BUT I also had $2500 in losing tickets to claim against that. Not sure if it evened it out - my accountant does everything but it definitely helped!!

I have never heard of claiming gambling losses

 

[mackeysmom]

So basically they just save the losing tickets and give them to whoever does their taxes? Is that only the scratch-off's - or the ones where you pick numbers as well?

I've always saved both and have never been told otherwise.

- Laura

 

[marlynnp]

I have never heard of claiming gambling losses

You can't claim losses. You can deduct them from your winnings.

 

[CookieGVB]

I think it's only for lottery losses, since it's run by the state. You can't lose at Vegas, and bring your receipts for cash withdrawals to your accountant.

 

[pklein09]

You can only deduct gambling losses up to the amount you win. Here's a copy from the IRS website:

You may deduct gambling losses only if you itemize deductions. However, the amount of losses you deduct may not be more than the amount of gambling income reported on your return. Claim your gambling losses on Form 1040, Schedule A, as a miscellaneous itemized deduction that is not subject to the 2% limit.

It is important to keep an accurate diary or similar record of your gambling winnings and losses. To deduct your losses, you must be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses. Refer to Publication 529, Miscellaneous Deductions, for more information.

 

[DOREEN1779]

I won the pick 4 in NJ in 1991. 10 straight, the number 1779. One was I off my liscense plate, 779 the ending 3. I had to pay more taxes that year then my parents! I also boxed the number but the box was under $500 on seperate tickets so as long as you caash them in one by one, I was not taxed.