Indiana Lottery Winnings Annuity Deduction

Article ID: 60104  

Question
Indiana Lottery Winnings Annuity Deduction

Answer

You may be eligible to deduct annuity payments received from a winning Hoosier Lottery ticket for a lottery held prior to July 1, 2002. This deduction applies only to prizes won from the Hoosier Lottery Commission; proceeds from other state lotteries or from other gambling sources, such as casinos, are not deductible. In addition, proceeds from winning Hoosier Lottery tickets for lotteries held after June 30, 2002, are not deductible.

 

Example. Jennifer won $2,000,000 playing the Hoosier Lottery with a ticket purchased in June of 2002. She elected to receive annual installment payments of $100,000. She received the payment before moving out-of-state, and reported the income on Indiana’s Schedule A, line 20B. She is eligible to claim the full $100,000 deduction.

Enter code 629 on Schedule C under line 11 if claiming this deduction

 

 

 


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Views: 2118 Created on: Jun 15, 2013