Lottery Winnings (Hypothetical Question!)

So my wife's work does a office lottery syndicate which she puts her £2 into, not because she thinks they ever have a chance of winning mind you but it's one of those offices where if you don't give to whatever fund is being passed around that week you're seen as some horrible stingy person  , I'm sure you know the sort!

But it got me thinking, if they won and we got our six million or so quid (Oh how I can dream), what would be the tax implications? The National Lottery is income tax free here, but how would the IRS view that? And if you were expected to pay U.S taxes on it, how on earth would someone pay several hundred thousand dollars?

Uncle Sam will get his cut IF you are an American. But if I win the £113 tonight, I'm dropping out. LOL

I ran a syndicate at work and anymore than 10 isn't going to give you enough to quit based on the normal 2.5 million Lotto. The big Euromillions, well that's different.

It all is a crap. I got 4 number Wednesday and got a lousy £55. 2 numbers away from the 6. It should be a bit more spread out. 5 numbers should enable you to pay off a reasonable priced house. You'd be lucky to get a car for 5 numbers.

Well got my tickets for tonight.

Uncle Sam will get his cut IF you are an American. But if I win the £113 tonight, I'm dropping out. LOL

I ran a syndicate at work and anymore than 10 isn't going to give you enough to quit based on the normal 2.5 million Lotto. The big Euromillions, well that's different.

It all is a crap. I got 4 number Wednesday and got a lousy £55. 2 numbers away from the 6. It should be a bit more spread out. 5 numbers should enable you to pay off a reasonable priced house. You'd be lucky to get a car for 5 numbers.

Well got my tickets for tonight.

Oh I have no illusions whatsoever that we'll even get a tenner It is the Euromillions her office does.

That would be a major bummer though, imagine winning six million and then having to turn over two million straight away to the U.S Government.

thats why if i win, i would give the ticket to my partner to cash in. so uncle sam wont get a penny.

out of curiousity,how would uncle sam know you won the lotto anyway? or is it just an honesty thing,where you admit you won?

thats why if i win, i would give the ticket to my partner to cash in. so uncle sam wont get a penny.

I don't play, but my UKC husband does.  So if he wins, do we need to pay US taxes on it?

thats why if i win, i would give the ticket to my partner to cash in. so uncle sam wont get a penny.

out of curiousity,how would uncle sam know you won the lotto anyway? or is it just an honesty thing,where you admit you won?

I'm with you. Think off-shore bank accounts, and savings account in DH's name. And perhaps, putting a teeny-tiny bit in my own account to keep Uncle Sam happy.

If you file married filing separately, non-resident alien spouse, and the money remains in the spouse's name, why should the US get any tax from it?

Both me and the wife are American (Although I'm a dual British/American citizen) so we wouldn't have much choice unless we chose not to declare it and risk major tax evasion charges should it ever be discovered.

This is mostly a fun what if scenario anyway Although if they did a 'X amount each year' option, if it was under a certain amount it would all get discounted under the foreign income exclusion I assume?

I'm with you. Think off-shore bank accounts, and savings account in DH's name. And perhaps, putting a teeny-tiny bit in my own account to keep Uncle Sam happy.

Hence handy living on the Isle of MAN!!!!  I would so have various bank accounts dotted around the island!!!

What Ink said.  My UKC only husband plays online. 

Although if they did a 'X amount each year' option, if it was under a certain amount it would all get discounted under the foreign income exclusion I assume?

No.  Gambling winnings are not earned income.

Ah, what if's.

Good point regarding a UKC only spouse. But that'd prove one's trust. LOL

£113 million? I think that be hard to keep secret. Specially when you keep flying back to visit family on your own private Lear Jet.

If I recall the casinos in MS withheld 30% of any big wins for Sammy.

PS there ain't none of this x amount per year for 20 years crap here. It 100% all yours.

This thread cracks me up because I was doing the EXACT same thing: Hmmm, so if we win the Lotto of my dreams, then he will have to have all the money in his name so we don't have to pay US taxes on it...then how will we pay off my parent's mortgage?
(I have very detailed day dreams )

Great thread!

ive already told my partner that if we win, we arent tellin anyone except for his family, last thing i want is people coming out the woodworks, charitys calling 24/7 (we both give to charitys at the moment,and the charitys we do give to, will get some of the winnings.. no other charitys though)

I'd do my best to stay as anonymous as possible.