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I have been winning very big on scratchers for a year. I have a question

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I know that sounds crazy. But in my state they came out with a new scratch game that's easy to beat. I have winnings of over $50,000 in a year. That's 50,000 more than I spent. It's all $500 winners. Do I owe taxes ? I never got a winner over $500 at 1 time. Do I owe taxes. I'm being serious here. Thank you in advance

Ronnbee's avatar - Lottery-011.jpg

seriously doubt that $50,000 !!!!!

Raven62's avatar - binary
In response to spencerjames

There are four ways to know if you owe the IRS money.

Online - check using online tool.

By phone - call the IRS at 800-829-1040, Monday through Friday 7 a.m. to 7 p.m. local time.

In-person - go to the nearest IRS office.

By mail - if you're getting letters from the IRS, then there's a good chance you have tax debt.

reddog's avatar - rickyavatar4
In response to spencerjames

No, because it is less than $599 and so you were not made to fill out a 1099 form before collecting your winnings. 1099 forms are how the IRS can track winnings.

Todd's avatar - Cylon 200.jpg

<Moved to Instant ("Scratch-Off") Games forum>

Please post in the appropriate forum ... thank you.

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In response to spencerjames

Hi spencerjames, I've researched this some in the past and from what I can tell from IRS info is that all net gambling income is taxable.  If at or above the claimer level then it's obviously automatically reported.


If though, like you mention, you have a series of $500 winners, even though there's no paper trail so to speak I believe that the net winnings in both part and in total are taxable as income - but the direct paper trail that would otherwise result from claimer-level wins are lacking, so I gather that most such winners do not declare small (under $600) winnings.

Just my soap box - I think in general the resulting undeclared small lotto winnings are too small on average across the typical tax payer for the IRS to worry about (like garage sale income), but if, like you mention, you've earned tens of thousands of dollars in winnings in a given year it can leave a paper trail.  On the off chance if you're audited you'll have to produce bank account statements, and $50K in unexplained deposits will stick out like a sore thumb if you've deposited the winnings in any financial institution...but if it's under your mattress or in a shoe box somewhere then yes no paper trail but other risks, lol.

Either way I'm not a tax specialist or attorney, so I encourage you to research further in the link below and do what's best.

Congrats on the winnings and please share what you can about your success.

https://www.irs.com/articles/windfalls-and-your-taxes

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In response to Ronnbee

Well it's 100% true and when the game is over I will exain just exactly how easy it is to beat this game.

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In response to reddog

Sweet. I hope you are right. This is what I thought too since each winner was $500

skeptic's avatar - SHELLBY
In response to spencerjames

Hi spencerjames - sounds like you have a huge winning streak - if you are in Washington State they have 14 games where winning that amount is possible with just $500 wins. What game # is the scratch ticket you are talking about.

Not interested if you have a technique - just the game number.

Thanks !

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In response to Todd

Sorry. My question is about tax implications on lottery winnings. I thought this was the correct forum. Sorry

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In response to skeptic

Skeptic you seem smart. Study that game for a second and you will see that it's free money. I won $1500 + profit today alone. Most players don't even see it. That's the amazing thing. Only 1 other guy sees it. I have to go to bed now. Need to get up real early tomorrow.

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In response to skeptic

There is only one game you can win $50k profit without hitting a claimer. The other games will smash you in time

skeptic's avatar - SHELLBY
In response to spencerjames

In my previous post I asked what the game name was or game # ...... or better still, just post a photo of one of the $500 wins .....

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In response to skeptic

I thought I put it but I guess I didn't.

Game 1599

They still show 6000 uncashed $500 winners but the reality is this game is over. It has been replaced by game 1593 pretty much everywhere. Really sucks, I was hoping they would replace it with another game with the same pay table. But I'm sure they have figured out how easy it is to beat.

The game 1593 pay table is the same as the black ice game. This is a pay table that simply can't be beat long term without hitting a big claimer. 

I managed 4 good hits yesterday but those are all changed to game 1593 now.

I would explain exactly how I murdered # 1599 but I'm sure you can all see it.

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