lotter tax

[accobra1]

I claim my 76 year old mother-in-law, she has no pension but does collect social security. She won $2500 in lotter, does she or I have to pay tax on that money?

[Bsch4477]

If that is her only income she doesn’t have a filing requirement and you can still claim her as a dependent if you provide more than half of her support. 

[accobra1]

Thanks. They will send me a W2 form, I don't have to add that as income?

[BillM223]

To be precise, they will send her (your MIL) the W-2G.

As Bsch4477 says, if your MIL is your dependent and has no other income, she may not have to file a return. You would not add it to your return in any case.

Note that if the state withheld some amount from the winnings and reported that on the W-2G, then you may want to file a return for her so that she can get that withholding back for her.