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Level 2
posted Mar 23, 2020 5:42:37 AM

Do I still need to submit within 60 days the MD 502d form if I submit Form PV for lottery $5000? Also, when do I pay the federal tax on lottery? nothing was withheld.

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1 Best answer
Expert Alumni
Mar 23, 2020 2:25:24 PM

Form PV is certainly still valid, as it's available for Tax Year 2019 on Maryland's 2019 Individual Income Tax Forms page.  Form 502d is not listed among available forms.

5 Replies
Expert Alumni
Mar 23, 2020 7:05:16 AM

As of today, MD still is saying that yes, you do, on their website.

 

Form 502D may be filed by taxpayers who are required to complete an income tax return if their gross income is more than $500 in excess of their withholding.

Taxpayers who received more than $500 of income from sources like prizes, awards, raffles, or lotteries are required to file Maryland Form 502D within no more than 60 days.

 

For Federal, all your income and withholding are lumped together. You don't pay tax on any item separately. If you have a refund after entering the lottery income, your withholding from other sources has paid the tax. If you owe, you pay for all your shortage of withholding.

Level 2
Mar 23, 2020 12:28:58 PM

Thank you for response!

This link from 2017 says "502d or voucher;"  https://www.marylandtaxes.gov/forms/Personal_Tax_Tips/tip54.pdf

Also, this more current site says only MD payment voucher form is needed? https://www.mdlottery.com/winners/how-to-claim/#tax-information

Expert Alumni
Mar 23, 2020 2:25:24 PM

Form PV is certainly still valid, as it's available for Tax Year 2019 on Maryland's 2019 Individual Income Tax Forms page.  Form 502d is not listed among available forms.

Level 2
Mar 24, 2020 6:40:03 AM

Thank you so much! Very helpful! 🙂

Last question is the payment type on the MD Form PV.

I don't usually pay estimated payments cause my employer withholds tax from paycheck, but for this lottery, I marked the first checkbox 1 below and I also marked 1a on form MD Form PV. Is that correct?

 

PAYMENT TYPE

Check ONLY one box (1,2,3 or 4) for type of payment. If Box 1 is checked, also check box 1a., if first time estimated filer or filing status has changed.

 

1. Estimated payment/quaterly (502d) 

1a. First time filer or change in filing status

2. Extension Payment (502E)

3. Payment with restident return (502)

4. Payment with nonresident return (505)

 

So I think I should mail in MD Form PV only with my tax payment check, and not form 502d.

I also don't need to pay federal taxes on $5000 lottery winnings until next year when I complete my 2020 return in March, 2021?

Expert Alumni
Mar 24, 2020 7:24:45 AM

The link  uploaded to the thread says, " You should file Form 502D or the voucher by the following dates"