It is quite common for people to score a gambling win as part of a group, particularly when playing the lottery. In particular, families, friends and coworkers often pool their money together for lottery drawings with big jackpots. In some cases, the joint purchases have resulted in those big wins. It’s important to know what to do if you make a big score as part of a group with regard to your taxes.
As usual, there’s a form for that. IRS Form 5754, the Statement by Person(s) Receiving Gambling Winnings, is the one to use. One person in the group will have to be the person directly receiving the winnings, but other members of the group can fill in their information below and indicate their share of the proceeds. After the form is complete, it should go back to the venue where the prize was won such as the racetrack, the Kentucky Lottery, or wherever everyone went to play. Then, be sure to claim your portion of the prize on your income taxes as indicated above.