…am I screwed, tax-wise? I couldn’t possibly collect the prize until 2011, but would I owe 2010 taxes on it? I’d also have zero time to shelter it or make charitable donations to offset the taxes.
Or do lottery winnings not get taxed until you get an actual check, bank transfer, or whatever kind of payout?
You are almost certainly a “cash basis” taxpayer, thus your winnings are taxed when rcvd.
Thus your supposition in your 2nd paragraph is correct.
You needn’t worry about it.
I called “dibs.” 
I doubt you have elected to pay taxes on an accrual basis as DrDeth has stated. You pay based on when you receive not when it was earned.
Since you haven’t filed a claim the money isn’t yours yet. You can’t be taxed on it since you don’t even know how much money there is, were you the only winner or were there 3 winning tickets?
I would say until you actually make a claim that money is no more yours than it is mine.
The money is not payable until you present the ticket, even though you know you have a winner. You will present the ticket in 2011 and not pay until that tax year.
This can be confusing in some situations. Money credited to your bank account on 12/31/10 are still taxable in 2010 even though you don’t even know it until you get a statement in 2011.
Pretty sure you are all clear on the Lotto. Just don’t cash it until next year.
Hijack:
I got 5 out of six numbers on Supercash last night! I almost never play any lotteries. But this is the fourth time this has happened to me. Maybe it’s a sign I should play more, or maybe it’s just fate screwing with my head!
They drew a doubler too, so I’ve won 2 grand. I am very happy, but 1 number off is still maddening! Grrr!:mad:
Wow that’s good going pkbites, always the bridesmaid eh?
Next to being nearly naked on a floor while a hillbilly girl points a gun at me and laughs, it’s my greatest fear 
Interesting. I never imagined someone saying “Man, am I so screwed! I just won 22 million dollars”.
Interesting case. I worked for a small firm back in the beginning of this century in the midst of the dotcom boom. Our firm got bought out and we were given stock options. I was worth (on paper) almost 22 million dollars, and because of the sale, I would be able to take 1/4 of that in just a few months. However, before I could exercise those options, the boom went bust and with it my 22 million dollar dream.
However, I later talked to the owner of the original company. He got paid in stock, so was taxed at the FULL RATE of the sale which was in the hundreds of millions. And, because he was a principle owner, he couldn’t sell his stock, and take the tax loss until the following year.
He told me he didn’t fill out a tax form for the first year (otherwise, he’d have to come up with a few tens of millions of dollars for tax payment), sold his stock, and took the substantial loss in the second year. Then, he filled his taxes for the first year using the second year loss to lower his payments. He ended up paying a substantial penalty, but it was the only way he could pay his taxes.
After that story, I wasn’t so upset that my stock options collapsed. At least I was able to sell my stock before the end of the tax year and take the “loss”. In the end, I ended up with about $18,000 from the stock options. Not all that bad, but not the 5 million dollars it was worth just a few months before.
I pay $250 an hour for that.
Is that the rate before or after you withhold FICA and income taxes for the girl?
Prostitutes are independent contractors. They’re responsible for self employment taxes.