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Illinois Lottery Winners Get IOUs not Cash

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unokitty said:
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We should have known it was a scam. The legend is that there's a pot of gold at the end of the rainbow. In reality, rainbows do not have ends, so there's no gold. Trying to find the end of the rainbow is a complete waste of time.
 
so the lottery isn't a separate fund and organization?

Here it's a specific fund that then uses the profits for cultural projects based on certain criterias (e.g. free access), so the state can't dip into it to cover debts. The spirit is that since the lottery is people's money (often poor people's money too), it has to go back to the people, not cover the errors of politicians.
 
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hahahah, those commercials advertising the state lottery sound even funnier in IL.

Talk about a stupid tax, not only do you have virtually no chance of winning, but even in the odd event that you do win, you have virtually no chance to actually collect your winnings! 😀
 
Genx87 said:
Hey just wait until they stop paying out pensions. Then the real fun starts! But remember WI is a horrible republican controlled state. Even though their pensions are fully funded.

Funny, so is South Dakotas. Of course you can guess where the IL pension system sits with being 39% funded.

http://www.politifact.com/wisconsin...sin-only-state-fully-funded-pension-system-s/
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This is one of those cases where being the 1 responsible person in the room is a bad thing. Every state will get a federal bailout. Every state except WI because that's how "fairness" is supposed to work.
 
PokerGuy said:
hahahah, those commercials advertising the state lottery sound even funnier in IL.

Talk about a stupid tax, not only do you have virtually no chance of winning, but even in the odd event that you do win, you have virtually no chance to actually collect your winnings! 😀
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And you still have to pay income tax on the winnings even if you have not received them😛
 
Not gay and not a joke. I grew up in PA where there were rainbows almost every spring day. One landed within a mile from my house so I grabbed my camera and tried to find it. And I did. I was only about 14 or 15 at the time, and I have never been that close to one again in the last 40 some years that I've lived since then.
 
You don't understand, Illinois is trying to help people with gambling addiction. What a better way, than to not pay off big winners. It's progressive and caring.
 
cabri said:
And you still have to pay income tax on the winnings even if you have not received them😛
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Talk about a double whammy. Congrats, you just won $100 meeeeeelion dollars! We'll give it to you at some point in the future. Oh, and while we're at it, here's also an invoice for your $30 meeeelion tax bill. It's due immediately.

lol @ IL.
 
I really don't understand. Say they take in 20 million during the week. Someone wins it and takes the lump sum. They only have pay what 12 million but then after taxes at 40% you get 7.5 million.

Is this not a bad ponzi scheme if you take in 20 million last week and can't even pay 12 million 5 days later? Oh yeah looks like a huge racket taking in 20 million and 1 year later effectively only giving out 7.5 million after lump sum and taxes.
 
BrunoPuntzJones said:
Nope, lottery winnings are taxed constructively. Effectively in the year when received.
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Unsure what you are stating, but once the state has issued the IOU, the IRS would probably considered the unearned income received. If was not differed by a payment plan.

Now one could go to tax court to fight a determination
 
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cabri said:
Unsure what you are stating, but once the state has issued the IOU, the IRS would probably considered the unearned income received. If was not differed by a payment plan.

Now one good go to tax court to fight a determination
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You haven't actually received the income though, just the promise of being paid.

I'm skeptical the IRS would pursue much less be able to collect under that.
 
The lottery is a scam, a lie, a con, designed to trick the most vulnerable people into deeper poverty with the false promise of a better life.
 
K1052 said:
You haven't actually received the income though, just the promise of being paid.

I'm skeptical the IRS would pursue much less be able to collect under that.
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If Illinois issues a 1099 form next January, you are on the hook to Uncle Sam and your residing state.

The US AG should shut this criminal activity down. Nothing on their website that says that they will not pay you if you win.
 
TheGardener said:
If Illinois issues a 1099 form next January, you are on the hook to Uncle Sam and your residing state.

The US AG should shut this criminal activity down. Nothing on their website that says that they will not pay you if you win.
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I also suspect there is nothing about how soon you will be paid.
 
Lottery winning dates are determined when the winning ticket was drawn, not when it was cashed.

Court battles between spouses have decided that the act of not cashing the ticket does not mean the ticket is an asset.

I would think that anyone trying to get money from a ticket winner will try to utilize the same argument.
 
cabri said:
Unsure what you are stating, but once the state has issued the IOU, the IRS would probably considered the unearned income received. If was not differed by a payment plan.

Now one could go to tax court to fight a determination
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Or you could just file using the cash accounting method, so tax won't be due until it is actually paid.
 
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