2007-10-09 05:28:53 · 6 answers · asked by scerge59 1 in Business & Finance ➔ Taxes ➔ United States
If the winner is a US citizen, national, or resident it is fully taxable in the US.
About 13 years ago, an Air Force NCO stationed in the UK won the UK Lotto. His winnings were not taxed by the UK (per UK law) but he was shocked to learn that the $20 odd million would be taxed by the US and his home state, to the tune of nearly 40% of the total win.
BTW, there is no legal bar to entering a foreign lottery as long as you're on foreign soil when you enter. The only bar is to shipping lottery materials through the US Mail or any other shipping service. I had a couple of sweet hits on the UK lottery myself, though not as much as my buddy did. :( (And yes, I paid the taxes! The UK notifies the US of wins by US persons.)
2007-10-09 06:14:51 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
If the person is a citizen of the US, then yep. Also, if the US citizen has investments in other countries then the person has to pay taxes on those as well. Some people try to hide income like these but it is still possible to get caught and end up in trouble.
2007-10-09 12:33:35 · answer #2 · answered by A.Mercer 7 · 0⤊ 0⤋
Yes, if they're a US citizen. But if you got an email telling you that you won a lottery, it's a scam, you didn't really win anything.
2007-10-10 02:36:17 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
Yes
If you received an e-mail saying that you won a lottery in which you do not remember buying a ticket, it is a scam; you will receive no prize money and you owe no tax.
If it is an actual lottery and you are able to receive a prize, then that is subject to U.S. taxes.
2007-10-09 14:46:37 · answer #4 · answered by StephenWeinstein 7 · 0⤊ 0⤋
US citizens are not allowed to participate in foreign lotteries or to claim prizes from foreign lotteries. Foreign lottery solicitations of US citizens are illegal.
If you are notified of a foreign lottery winning, be assured it is a scam and do not respond to it.
2007-10-09 12:37:45 · answer #5 · answered by ninasgramma 7 · 0⤊ 1⤋
If that person is a US citizen it is taxable.
2007-10-09 12:32:08 · answer #6 · answered by ? 6 · 0⤊ 0⤋