Have you ever won over $500 from a lottery ticket? It's exciting, isn't it? Until you realize that you've crossed the magic number and now you have to fill out a prize claim form. Now that you've filled out the claim form, you're now on the hook to pay taxes on your prize. If you're lucky, you're in a state that doesn't tax you - but you're still responsible for the taxes on the total amount of your prize.
UNLESS you can prove that you incurred gambling losses throughout the year! This is where the ScratchOffOdds tracker comes in to play. We help you manage your game history, so that when the time comes you can properly report your WINS and LOSSES to the respective tax agencies.
Take one of users, John for example: Last year was a good year for John. He was able to use scratchoffodds.com/texas to find some of the highest paying tickets available.
As a result, he won about $3,000 in prizes that required him to fill out a tax form. Since these prizes are taxed as income, come tax time John needed to pay around $900 (~30%) to the IRS. By his estimate, he had spent about $1,500 throughout the year on various lottery tickets.
Because he kept records of all his tickets, he was able to claim the gambling losses on his taxes and was only liable for the NET PROFIT he had made from scratch off tickets. If we do the math, we'll see that ($3,000 - $1,500) x 30% = $450. Just by tracking your tickets throughout the year, you're able to save BIG TIME during tax season.