How would you handle this?

[Whoson1st]

Taxwise--how would you handle making a HUGE score from a book. I'm not talking about simply reporting winnning at tax time. But would there be some penalty.
A for example...Retired person living on fixed income of about $30K per year.
Hits for a HUGE figure one year--wins $100K! (Forget losses). Is there some penalty tax wise for waiting until tax time to report this or should it be reported immediately to avoid some type of extra tax penalty?

 

[billhill999]

Taxwise--how would you handle making a HUGE score from a book. I'm not talking about simply reporting winnning at tax time. But would there be some penalty.
A for example...Retired person living on fixed income of about $30K per year.
Hits for a HUGE figure one year--wins $100K! (Forget losses). Is there some penalty tax wise for waiting until tax time to report this or should it be reported immediately to avoid some type of extra tax penalty?

15 years ago I hit the 4 digit number (had it multiple times) for a huge score.
I had to go to the NYS Lottery office, they gave me the option of them taking the taxes out right there and then for me, or report it on my tax form.
I reported it on my tax form April 15 time, and took the payout.
I'm almost 100 % sure that person is fine if he waits until tax time to declare.

 

[Whoson1st]

Thanks 999!