#2) Taxability of lottery winnings- the answer above is, (IMHO) incomplete/inaccurate. If the winner of a lottery has no SSN, then the winnings cannot be “taxable income”. The status of the “taxability” depends upon the tax status (or lack therof) of the “winner”. The answer above assumes that the winner is in a “covered” situation (as 99% of people are such).

Questions, what is the law regarding a U.S. citizens claiming winning from a lottery in another country, like Cananda?

I was just curious does lottery winnings affect someones government benefist like widows and disability.Someone told me that they put a stop to your lottery winnings and make you pay the money back like ssi or widows benefits.Is this true ?please get back to my email let me know

A woman from the US hit the Canadian lottery a few years ago for $5,000,000.00 when told by the crooks in the US that she would have to pay taxes on those winnings, she moved to Canada.

It’s one thing to complain about taxes when you earn the money, it’s another when you just win it. If I were to win the lottery , I will happily give them the taxes owed. I would still be at LEAST a million times richer than I was the day before. And not all states in the US tax lottery winnings.

You two people who commented are just the kind of people I am talking about. You enjoy the Bone that this corrupt government throws you once in a while. They do it so that you don’t complain after they rob you blind. They live the great life at the expense of the dumb American people. And Yes, I do plan on leaving this foul war monger country. Have a S*^y day.

a trust…..but not just any kind of trust.

To be honest i have to agree with you. Yes, we agree to the rules on the ticket when we play, and a huge chunk of that tiket money goes to the government, a smaller to our local schools and a tini tiny goes to the stores. But it is not just in the lotto, americans appear very happy to give their wealth way to just about any institution, regardless of what it uses th $$$ for. Take your Banks, they steal left right and center. So Ben, although i dont like your language, i understand where it comes from. It is very frustraiting to deal with sheep. Woof!

FYI- you need to be a legal resident to claim a lottery ticket. If you do not have a SSN you cannot claim the price.

If we know that we have won a lottery (considering iam an L-1 Visa holder (with a SSN),can i go to the nearest lottery office (Not the Local gas store) and claim my prize ? Will i get a check at the office immediately or will i be getting a check to my home through postal mail or will the money be credited to my bank account ?

That isn’t necessarily true. Check your local and state laws before presuming anything. I randomly picked a state and came up with Florida. For example, the Florida lottery is as follows. Federal Withholding Taxes: Appropriate federal income taxes will be withheld from both Cash Option and annual payments at the time payments are made. If a Florida Lottery prizewinner is a U.S. citizen or resident alien with a Social Security number, the Internal Revenue Service requires the Florida Lottery to withhold 25 percent federal withholding tax from prizes greater than $5,000. If the prizewinner is a U.S. citizen or resident alien who does not have a Social Security number, the Florida Lottery is required to withhold 28 percent federal withholding tax from any prize of $600 or more. For nonresident aliens, the Florida Lottery is required to withhold 30 percent federal withholding tax from all prize amounts. The Internal Revenue Service requires the Florida Lottery to report all winnings of $600 or more for U.S. citizens and resident aliens.

So, like I said check your state laws.

If a person wins the lottery in a state, like CA, that charges no state tax on lottery winnings, decides to take the annuity payments, then moves to a state, like NY, with income tax on lottery winnings, will the person have to pay NY state income tax ( in the new state of residence) on the subsequent annual payments?

Does a visitor to the USA pay taxes if they win the lottery?

I am a resident alien. I am playing the lottery on my home country. If I win, do I need to pay taxes on those winnings in the US?

I’ve read, repeatedly, that lottery winners should consult a tax attorney before claiming their winnings. Is yours such a firm? If so, please forward your information to the above email address.

Thank you.

I’m not a big fan of the comment above that stated ‘you played the game, follow the rules’. That implies that any rule ever made was just fine and dandy, and if you didn’t like them, tough poop. That kind of thinking reminds me of when I humped an M16 around in the Infantry. ‘Just shut up and do what your told’. In real life, people have a right to object and to, especially in matters of politics, to demand change. I agree with the point about why not pay taxes on lottery wins? Why not do it another way? Maybe just take a cut off the top and let the winner have the rest. That way, they state gets their cut of the take. That’s how most, non American lotteries operate. Our lotteries are taxed because that the was the only way proponents could sell it to conservatives in various states. ‘We’ll tax the sucker, then all will be good’. Keep in mind that in the early days of the lottery, most states promoted them as a way to cut down on crime, and to put bookies and the mob out of business. Second, the requirement that winners claim their prize in public sucks big time. Winners should have the option to remain private and to avoid the pitfalls of winning and going public. Too many states use the weird logic that winners must be made public to prove the games are legit. However, in reality they want to use winners in promote lotteries. Some states, like Virginia for one, even refuse to let winners collect in a trust to protest their privacy. Again, the logic is that people will think the lottery is fake unless you tell everyone who one. Someone needs to tell states like Virginia that most states allow trusts, some even will allow you to not even use your name, and they are operating very successfully. Seems like going public is just a way to keep state lottery bureaucats in a cushy job. We all need to pressure or state elected officials to change the state rules about collecting lottery prizes. And soon, so that we don’t have to have more winners ending up like the guy in Florida, who was killed by bad people attracted to him because of his lottery win and publicity.

Yes you can divorce and then collect. However, for the husband to NOT get any money, the divorce has to be finalized prior to the draw date of the winning ticket.

I am no expert in this, but from my readings, the lottery will hold winnings in the amount of any back/nonpaid child support that is being reported by the state. Other than that, I can’t say for certain.

The customary approach would be to establish two (2) trusts. The first trust would be, with the grantor’s/winner’s name (e.g., your name) disclosed on the face of the trust agreement. However, when a lottery claim is made by a “blind trustee”, it is not unusual for the lottery commission involved to require the trustee/claimant (who is the “agent” for the “undisclosed/anonymous” actual winner) to provide a copy of the trust agreement “under which” the claim is being made.

You do not want the “real” winner’s name to show on the trust agreement presented to the lottery commission as documentation with the “blind trustee’s” claim, you can add provisions to the first trust agreement that direct the “blind trustee” to establish a second trust for the sole purpose of pursuing and collecting the lottery prize anonymously. Thus, the second trust agreement identifies the “agent” (usually, the same trustee as under the “first trust”) as the “grantor” and “trustee”, stipulating that the grantor has established the trust for the specific purpose of claiming the prize on behalf of an undisclosed Beneficiary or Beneficiaries (who are identified in the “first trust” but not under the “second/blind trust”).
Also You just need to add a stipulation/direction that reserves to you, personally, the right to direct when/how/where the funds are to be transferred to your account by the trustee. The actual “account details” need not be spelled out in the trust (but should be spelled out in a separate, written direction from you to the trustee.

You can name the second trust anything you want to just so it’s not your name. As soon as the winnings are collected, the second trust will distribute the winning to the first trust and the second trust will terminate.

my friend nikki lives in another country and her husband who acquired U.S citizenship won a lottery for $20 million. They are not legally separated and they have children. The man eventually married again without being separated from his wife in the other country. What should she do?

If I take my ticket to a Lottery office how long does it take for them to process it and how do they make the payment? Can I request an electronic deposit to my bank account, which I have notified of my upcoming unusually large deposit?

What I.D. do the Lottery people require?

Call me after the divorce is final Bobbi. We’ll pool our lottery winnings and head to the islands…

If a person is unemployed and has no income, do they pay ny taxes on $20K?