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Questions tagged [lottery]

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109
votes
20answers
30k views

Are lottery tickets ever a wise investment provided the jackpot is large enough?

If the odds of winning a lottery jackpot are one in 292 million, and the jackpot prize is expected to be greater than than $1 billion, does this make a lottery ticket a wise investment? I know there ...
72
votes
11answers
17k views

Won the lottery - how do I keep the money?

Sadly only a hypothetical question, but here it goes: If you suddenly gained a large sum of money (several million $/€/whatever) by winning the lottery, some inheritance or anything else, how could ...
37
votes
9answers
14k views

How does gambling (like buying a lottery ticket) differ from investing?

Investors seeking a higher return on their investments may invest in things that they know have a higher risks associated with them. Greek bonds have higher interest rates, and banks charge more ...
17
votes
4answers
2k views

Is taking a lump sum from a lottery or other prize always preferable to taking the payment plan?

Every time a big money contest or lottery is advertised, their big "jackpot" prize is always really a payment plan - something like $50,000 a year for the next twenty years. Is it ever preferable to ...
13
votes
2answers
3k views

If I won the lottery but gave it all away, would I still have to pay taxes? [closed]

Suppose a hypothetical somebody won the lottery, but being such a magnanimous fellow, they decided to give away every penny. Would my hypothetical do-gooder still have to distribute money from post-...
12
votes
1answer
4k views

Can pretax lottery winnings be donated to charity?

Can pretax lottery winnings be donated to charity in the US simultaneously creating a deduction of the taxable lottery winnings and putting pretax proceeds to a productive cause?
8
votes
3answers
95k views

How does a big lottery winner cash his huge check risk-free?

You've just won $20 million in the lottery. Until you figure out what do do with the cash, you want to move it to the safest place you know: US Treasury account(s). But the lottery (per the ...
7
votes
3answers
7k views

Are lottery winnings taxed based on the ticket date or the redemption date?

Suppose I purchase a lottery ticket today (Dec 14, 2015) and win $25K. If I wait a few weeks and redeem the ticket after Jan 1, are the taxes due based on income in this year (2015) or next year (2016)...
6
votes
2answers
2k views

How long to save losing lottery tickets?

I know I can write off losing lottery tickets (a) up to the amount of any winnings, and (b) provided I itemize my federal taxes. But does that apply only to losses in the same year as winnings, or ...
6
votes
1answer
460 views

Can someone explain in simple and direct ways how the gift / donation tax works for a lottery winner?

My jackpot money is cleared in the bank with all its federal/state/city/village/building taxes paid in full. Now I want to start giving money away. What will be the tax implications if I give or ...
6
votes
1answer
608 views

Taxation on split lottery winnings?

If you and another person (or group of people) went in a pool to buy a bunch of lottery tickets, and win, how does taxation work for people who split lottery winnings? Does one person claim the ...
5
votes
3answers
546 views

Is playing the lottery worth it in the same way that insurance is?

I was reading this question, and it made me wonder - If insurance is worth the expected loss because of the catastrophe that it could prevent, can playing the lottery be worth the expected loss ...
5
votes
4answers
96k views

If someone lives in one state and purchases a winning lottery ticket in another, where should they file their winnings?

If you've been paying attention (at least in the US) for the past couple days, you are aware of the Mega-Millions lottery drawing that is coming up which is conservatively estimated at $500m $640m! At ...
5
votes
1answer
3k views

How are lottery winnings taxed when you move to a new state?

If you win Mega Millions in a taxing state and choose the annuity option and later move to a non-tax state, will you still have to pay taxes to the state you won in?
5
votes
0answers
133 views

Donating winning lottery ticket to 501(c)3 Private Foundation: cost-basis deduction + full tax free redemption for foundation?

US 501(c)3 Private Foundations are typically controlled by the primary donator, so that is a nice perk, but in exchange for that perk I realize the tax deductions for donating are significantly ...
4
votes
4answers
1k views

What is the relationship between the advertised and cash jackpots for Powerball (etc.)? [closed]

This question is asked at a time when the Powerball jackpot is at a record high and in the news a lot. Big jackpot games advertise their jackpot in terms of the amount that would be paid out in total ...
3
votes
4answers
749 views

What is the meaning of the Mega-Million's Cash Option - Avoiding lottery's winning taxes

The current Mega Millions jackpot is standing on $868 Million USD, while the Cash Option for the same Jackpot is $494 Million USD. The winner of any of Mega Million's jackpot has two options to ...
3
votes
1answer
5k views

What sorts of accounts would handle a person's Powerball jackpot winnings? [closed]

If somebody were to win the current Powerball jackpot today and take the lump sum, they'd walk away with $800-something million. I'm thinking they can't just pop that check down to their local Chase ...
3
votes
1answer
7k views

H1B Visa holder - Transferring Lottery Winnings to India Legal or Illegal?

Currently, I am working in USA on H1B visa. I came to US in JAN 2015. So for income tax purpose, I am Non-Resident Indian for financial year 2015-16. I have query regarding lottery winnings outside ...
2
votes
3answers
579 views

Can I mitigate lottery withholding tax by making an epic Vegas trip?

Lottery withholding taxes are quite substantial, and from my understanding of the federal tax regulations, gambling winnings can be offset by gambling losses up to the amount won. So if someone won 5 ...
2
votes
3answers
277 views

What are the chances of receiving interest when purchasing NS&I Premium Bonds in the UK?

I am considering buying 100 NS&I premium bonds, in the UK. Each $1 bond is automatically entered into a draw with a 1 in 30000 chance to win back what is effectively an interest payment*. My ...
2
votes
1answer
1k views

Sending income and lottery prizes to Tamilnadu, India from Singapore

I recently came to Singapore from Tamilnadu (India) for a 12 month project assignment and will be earning amount in SGD in Singapore. I came to Singapore via Employment Pass (EP). I have two ...
2
votes
0answers
119 views

Financial product with high variance, instead of lottery

When I was a kid, our family would once a year play the lottery. We kids talked with our parents about what we would do if we won the jackpot, and whenever we won something small like $100, we would ...
1
vote
2answers
4k views

If I win the lottery, what is the best way to secure this money?

Suppose I win the 62 EuroMillionen jackpot. Should I go to Switzerland and deposit everything there? Or stay with the bank that I have right now? Do you need to do anything special when you receive ...
1
vote
1answer
549 views

How do I cash a lottery check without proper ID?

I won a sum of money from the California State Lottery, I don't have an ID card from the state of California. I have an out-of-state Washington paper ID and a birth certificate. Can I cash my check ...
1
vote
2answers
717 views

Calculating theoretical Present Value

If I were to win the lottery and the present winnings were less than twenty million paid out over a time period of twenty years, how would I theoretically find the present value amount?
1
vote
0answers
65 views

Lottery tickets and tax exempt organizations [duplicate]

These might be the same scenario. I am a pastor. I find a lottery ticket in the collection plate. The next day it wins big. I want to cash in the ticket on behalf of the church. My church is a ...
0
votes
2answers
216 views

Lottery Winnings in United States

I noticed everyone is saying get a Lawyer, Financial Planner, and Tax Professional if you hit the big lottery. Why would I need a Lawyer to collect what I won? Is winning in some way Illegal? I don't ...
0
votes
2answers
235 views

How do they know if there wasn't any winner in CA for the most recent mega million lottery?

First, I woud like to apologize if I'm asking in the wrong place, and this may sound like a dumb question... but like an hour after the announcement of the winning numbers, medias of California ...
0
votes
2answers
9k views

Can a non-citizen claim a US lottery prize on a ticket purchased through a third party?

I used a lottery concierge service to buy a US lottery ticket online. I am not a US citizen. In the unlikely event of my winning, can I claim the prize if I come to the US and have the ticket with ...
0
votes
2answers
172 views

Best way to claim a winning lottery ticket anonymously [closed]

What is the best way to claim a winning lottery ticket anonymously?
0
votes
2answers
780 views

American citizens playing foreign sweepstakes

I've read here: http://www.fraudaid.com/scamspam/lottery/foreign_lottery_federal_statute.htm that it is illegal for U.S. citizens to play foreign lotteries (although many Americans play the Canadian ...
-2
votes
2answers
2k views

Winning the lottery and moving to save on taxes

If I win the lottery, can I move to another state or Puerto Rico to save on taxes?