So I scratched $1000 on a 2 dollar ticket. I sent it in 3 weeks ago and got my check today. I figured I would owe taxes on it and they would take it directly out of the check. Well I was wrong it came as the full amount. Now I figure I have to claim it on my income, but is there a way I can just pay the taxes on it now instead of having to pay money at tax time? NJ is the state btw.
2007-09-25 06:28:30 · 9 answers · asked by gvizzacco 3 in Business & Finance ➔ Taxes ➔ United States
You will add the $1000 to your gross income for both state and federal income taxes.
You can try to estimate the amount you will owe and send in the taxes now, but really, put it in a bank and earn a few cents interest then pay it when you file. Why give the government free use of your money when you don't owe it yet?
To pay early, go to www.irs.gov and search estimated income tax payments, and maybe NJ too, they will tell you how to remit the money.
2007-09-25 06:35:16 · answer #1 · answered by Gem 7 · 2⤊ 0⤋
Nj Lottery Scratch Off
2016-09-29 09:28:31 · answer #2 · answered by ? 4 · 0⤊ 0⤋
I can't imagine why you'd want to pay the taxes now, and would love to hear your explanation for that!!! You're not going to "gain" anything by doing so, and you actually would lose some money, if you had put it in the bank, even at a pittance of an interest rate!
Regardless, most lotteries (and even Vegas) will not report or take taxes out until it hits a certain amount (it varies between States; I think the Vegas minimum is $10,000, but don't quote me on that). Furthermore, some states may not even require you to file the gambling win (or any tax form, for that matter), ***IF*** your total gambling winnings plus other sources of income don't reach a certain minimum level.
From what I could find on the NJ Treasury/Taxation website, their online 2006 1040 form, line 23 instruction, clearly states the following: "Remember, do ***NOT*** include any winnings or losses from the New Jersey State Lottery" (the emphasized "not" is mine). It goes on to say, "Although not taxable, New Jersey Lottery winnings and losses should be listed on the supporting schedule."
So, if the scratch-off has the NJ State Lottery words or logo on it, it would seem to me that you're off the hook, completely! Report it, then fuggetaboudit! (of course, the Fed is going to want *its* share of the NJ winnings on Schedule A of the Fed 1040 form! Well, you can't have EVERYthing!)
2007-09-25 06:56:02 · answer #3 · answered by skaizun 6 · 0⤊ 0⤋
State Of Nj Lottery
2016-12-16 03:29:01 · answer #4 · answered by ? 4 · 0⤊ 0⤋
won 1000 nj scratch taxes
2016-02-02 07:12:06 · answer #5 · answered by Anonymous · 0⤊ 0⤋
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2014-10-09 09:01:43 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You can make a payment on Form 1040-ES (and whatever NJ's equivalent is) but you still have to claim it at tax time on your return. Making the payment now will lessen the chance of having a debt at filing time, that's all. Functionally is no different from your employer withholding taxes from your check.
2007-09-25 06:41:49 · answer #7 · answered by Bostonian In MO 7 · 1⤊ 1⤋
New Jersey does not tax its lottery winnings and you do not include it on your NJ state tax return. You will report your $1,000 lottery winnings on Line 21 of your federal return. It is considered gambling winnings and is reported to you and the IRS using Form W2-G.
For your federal retrun, on Schedule A, you may deduct gambling losses up to your winnings of $1,000. Keep your losing tickets or records of other gambling losses and deduct those as miscellaneous deductions not subject to 2% of your AGI.
If you are withholding the correct amount from your other income, the additional tax on the lottery win will not require you to file estimated taxes. Your extra tax would be at your ordinary tax bracket.
2007-09-25 07:44:02 · answer #8 · answered by ninasgramma 7 · 0⤊ 1⤋
If you itemize your deductions, don't forget to write off your gambling losses--all the other tickets you bought that did not pay off. You could put about $250 of the money in a savings account now and don't touch it until April and you should be OK.
2007-09-25 08:12:46 · answer #9 · answered by Anonymous · 0⤊ 0⤋
since you received over $600, you should get a 1099 form at the beginning of next year, so I would put 30% away for taxes just in case you don't have a big enough refund coming without it
2007-09-25 06:59:41 · answer #10 · answered by Anonymous · 0⤊ 1⤋