Winnings

[jennm8911]

While visiting family over the weekend my husband put twenty dollars in a slot machine and won $4900. We are at the halfway mark with our chapter 13. Do we need to turn this
over to the trustee? No taxes were taken out so we will have to pay at tax time. Very stressed don't want to derail our chapter 13.

Thank you

[LadyInTheRed]

Call your attorney and ask if you need to report the winnings to the trustee.

[dmc-2008]

Oh boy that would be a bummer!!!!

[pamkev]

Yes that would be a bummer

[jennm8911]

I talked with our attorney today and we can keep the money. We have already paid half of our base plan and still have 33 payments left seems like forever.

[pamkev]

Great News

[dmc-2008]

Great News

Boy you did get lucky! Are u in 100% pay back? Do you submit taxes? what part of California are you in?

Happy christmas huh?

[jennm8911]

We were in a 5% payback but the trustee changed to 40% because we had paid all unsecured creditors. We only have one secured creditor. We send in our taxes and live in southern calif.

[dmc-2008]

We were in a 5% payback but the trustee changed to 40% because we had paid all unsecured creditors. We only have one secured creditor. We send in our taxes and live in southern calif.

Wow!!!! Your trustee must be feeling very Christmas spirit! Enjoy it!!!

[LadyInTheRed]

If I were you, I'd put that money away. First, because it is a good idea to have the extra cash in savings during a Chap 13. But, also because of the experience of another BKforum member whose attorney told them they didn't need to report raises and bonuses to the trustee. Near the end of the plan, the trustee noticed the increases in income and insisted the debtor pay a huge amount to complete the plan. At the very least, don't spend the money until after your trustee has had a chance to review your 2014 income tax returns. Your attorney very well may be giving you sound advice. But, better safe than sorry.

[switch625]

No taxes were taken out so we will have to pay at tax time.
Thank you

Did you get a 1099 form from the casino that documents the winnings or shows any other withholdings? If you did, was your attorney's position based on the size of the payout, that it wasn't big enough to meet the Trustee's requirements for taking the $$ or modifying your Ch 13 plan?

[niko]

I second LadyInTheRed

[catleg]

Do you itemize your taxes? Report the gain as gambling winnings on 1040 and then claim an equal amount of gambling losses on your itemized deductions.

[andy158]

Save some of that for paying the state taxes when you file. In WV you can't claim gambling losses and must pay 6% of all gaming winnings. The feds allow you to claim losses up to the amount you have won provided you have proof of the losses.

[catleg]

Remember if you do not itemize deductions you are out of luck on taxes and will have to pay income tax on all W2G's