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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I won a florida lotto prize of 7,818.00 on 12/26/08 how can

Resolved Question:

I won a florida lotto prize of 7,818.00 on 12/26/08 how can I reduce my tax on the winning I have more than $3,000 dollars in lost tickets from 2008 can I deduct the $3,000 ? 1 and 2 do I have to file the winnings for 2008 or 2009 my yearly income for 2008 is social security retirement of $14,820. plus $3,500. working
Submitted: 8 years ago.
Category: Tax
Expert:  Merlo replied 8 years ago.
Hello walter,

Your lottery winnings are subject to tax in the year they are actually received. You should receive a 1099 form from the state of Florida reporting your winnings in the year they were paid to you.

As far as reducing the amount you owe tax on, yes you may deduct the cost of any and all losing tickets that you have from the same year as you received this amount. If you received this amount in 2009 then you can only deduct losing tickets from 2009, and cannot include the ones you purchased in 2008.

In addition to any losing lotto tickets, you may also deduct the cost of any other losses you had which can be classified as gambling losses. This might include losses you had at a dog track or horse track, and would include losses you had from games played at a casino, or money paid for losing raffle tickets. Your gambling losses are not limited to just your losing lotto tickets.

You may deduct any legitimate gambling losses you have of any type, as long as you have adequate records to prove your losses.

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Thank you.
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