A couple great questions have come our way about group play in lottery games. I’ll take on the first one today: Can individuals in a group that wins the jackpot choose the cash AND annuity options?
I suppose the thought process behind the question is that the friends, co-workers, neighbors or relatives who’d pooled their money to buy lottery tickets might not all agree how they’d like to claim the money once they realized they’d won big.
But the question isn’t really applicable in Iowa, and here’s why: When you win the jackpot, whether it’s with a ticket you bought on your own or as part of a group, we only issue one check for all the winnings. If you’re part of a group of 25, we don’t cut 25 checks, we just give you one check and the members of your group have to decide how you’ll divide the money from there.
But to ensure that one person isn’t stuck with all that taxable income liability, all members of the group do have to sign an IRS Form 5754 so all are listed for tax-reporting purposes. On the form, each person states how much of the prize is being claimed by him or her.
We gave a rundown on the ins and outs of group play and groups claiming lottery prizes in a video on our Web site. Click here to watch it.
Great questions! Keep ‘em coming. I’ll take on another one next week!



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