Okay, according to my latest check stub, my earnings for the year thus far come to just over $40K.
This Friday, I am scheduled to win $16.5M (I figured out that just calling “dibs” isn’t sufficient; I also have to mail the numbers I picked to the place where they do the drawing, so they know what numbers to pull. :smack: I can’t BELIEVE it took me this long to figure that out. But I digress) in the Mega-Millions lottery. That represents 75% of the $22M cash value of the prize (25% Federal income tax).
AIUI, once the drawing takes place, I have six months to claim the prize. It occurs to me that adding $22M to the money I’m pulling down at my current job is going to make filing a 1040A for 2012 a real PITA. So I’m wondering if I would benefit by delaying the claim date until January 2.
Actual question: Does the date of counting the lottery winnings as taxable income occur on the date of the drawing, or on the date that the winner claims the prize?
Need answer fast. Well, sometime in the next six months, anyway.