there are no words

[Kimmik]

WTF

there are no words to describe the kind of utter bullshit this is... there are people who make 100 dollars feed a family of 4 for the month... and he gets this shit... ug... be back when I can see strieght

[AdminAssistant]

I'm actually more bothered by the fact that college students are immediately disqualified from getting food stamps. Not everybody in college is 18 and being supported by their parents. *grumble* As for this guy, well, I don't blame him. The problem is with the state and federal regulations for allowing this loophole to exist.

[HYHYBT]

I'm more than a little confused: the IRS certainly considers lottery winnings to be income!

[insertNameHere]

More power too him, I like his point that they did take half of his winnings in taxes, but I guess most of that was to the federal government, still sure MI got some of it. Keep in mind this is the same state that gives people cash benefit cards that are "Like" food stamps but the morons get to spend it as they see fit, which can be used on Lottery and cigarettes.

It is bullshit, that college kids who are independent of their parents, can't get aid like this when it really would help out. I don't want to start the tangent of how it BS, I can't get food stamps for living at home, but they working on taking away my insurance through my dad's work. So WTF, I'm either a dependent who needs get insurance, or I want some damn government aid, because at min wage 3 days a week I sure as hell can't support myself.

[mikoyan29]

Keep in mind this is also the state that is cutting pay and benefits to people that made the mistake of working for the State. So I say fuck this douchebag. I am pretty sure the state does not collect taxes on lottery winnings. It is nice that douchebag found a loophole but it would be nicer if the state could tell him to go fuck himself.

[Racket_Man]

I am pretty sure the state does not collect taxes on lottery winnings. .

both the Federal and State governments take their share of lottery/game show winnings even before the winner gets any money or prizes. if physical prizes (eg. a car or camper or trips or other stuff) are won, the winner must pony up $$$$'s on whatever the tax percentage of the physical prize is.

maybe the State does not get their cut rightaway but in the end (or end of year) they WILL get their cut.

either way you WILL get issued a 1099 W-2 type form and the government will hold out it hand and want their cut

and in some cases you may get double taxed because the show is shot in say California and you live in say Flordia so both states have their hand in your pocket

http://www.walletpop.com/2010/01/13/...ame-show-winn/

Fron the article:

The Internal Revenue Code's Section 74 states that if you get something as a prize or an award, you have to consider it part of your gross income. You might be able to get out of it if you're part of a charity or if you can prove you didn't do anything to earn the award, but the IRS thinks that even asking for tickets to a broadcast is enough to qualify any giveaway as a prize, which in turns qualifies it as part of your gross income. To the IRS, it doesn't matter if Ellen DeGeneres hid a laptop under your seat or if you won it answering questions: You owe.<

[Andara Bledin]

I'm more than a little confused: the IRS certainly considers lottery winnings to be income!

Fun fact: Income tax isn't actually an income tax, because an income tax is unconstitutional. It's a "luxury tax" that uses a person's income to determine their luxury liability, which, of course, is completely and utter bullshit. If they wanted to have a luxury tax, they'd just tax fucking luxuries.

Regardless, just because money is taxed does not make that money income, even if it is incoming money.

^-.-^

[telecom_goddess]

I'm actually more bothered by the fact that college students are immediately disqualified from getting food stamps. Not everybody in college is 18 and being supported by their parents. *grumble* As for this guy, well, I don't blame him. The problem is with the state and federal regulations for allowing this loophole to exist.

I agree with this. When I was in college, I was not being supported by anyone but was living in an apartment with a roommate and food stamps would have helped me eat stuff other than frozen burritos and top ramen. They need to look at an individual's situation and whether or not their living expenses are being covered by their parents.

As for the lottery guy...it's stupid that this loophole exists but maybe this will help change things so someone else can't come along and do the same thing.

[mikoyan29]

both the Federal and State governments take their share of lottery/game show winnings even before the winner gets any money or prizes. if physical prizes (eg. a car or camper or trips or other stuff) are won, the winner must pony up $$$$'s on whatever the tax percentage of the physical prize is.

maybe the State does not get their cut rightaway but in the end (or end of year) they WILL get their cut.

either way you WILL get issued a 1099 W-2 type form and the government will hold out it hand and want their cut

and in some cases you may get double taxed because the show is shot in say California and you live in say Flordia so both states have their hand in your pocket

http://www.walletpop.com/2010/01/13/...ame-show-winn/

Fron the article:

when I say lottery winnings, I mean state lottery winnings. But since I've never won that kind of money (nor do I ever plan to), I wouldn't know. I know the feds get their share.

[DrFaroohk]

I'm all for loopholes. How often do the people in power use some sort of "loophole" to remain in power and keep the little guy down? All the time, that's how often. More power to this guy. He's following the rules. Not his fault the law makers fucked up.

[Sleepwalker]

"The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration."

How is that a luxury tax?

[DrFaroohk]

I have next to zero understanding on how taxes work, but I do know there are all kinds of loopholes that big corporations use to get out of paying taxes. And that stuff is way more than the cost of foodstamps.

[tropicsgoddess]

I'm more than a little confused: the IRS certainly considers lottery winnings to be income!

And any money you win from gambling and the like. I just think it's bullshit that because of the loophole the guy can still get food stamps and has 2 million dollars in the bank.

[AdminAssistant]

Well, it's probably closer to 1 million (taxes and all that).

[Kimmik]

My problem is that he has the means to support himself yet he is fully abusing a loophole that in the end will make it harder for honest folk to get help.

It is not a card "like food stamps" some people qualify for cash aide along with food stamps. it is meant to be used to buy stuff like tp, toothpaste, clothing for school age children... but like most things it can be abused.