How to Claim Scratch-Off Lottery Tickets in NC

Winning a scratch-off lottery ticket in North Carolina can be an exciting experience. Understanding the proper procedures for claiming your prize is important to ensure a smooth process. This guide provides practical information on how to claim your scratch-off winnings in North Carolina.

Essential Steps Before Claiming

Immediately sign the back of a winning scratch-off ticket. A lottery ticket is a bearer instrument, meaning the signed ticket’s possessor is its rightful owner. Failing to sign leaves it vulnerable to others claiming your prize. After signing, secure the ticket to prevent loss or damage.

For prizes of $600 or more, photo identification and your Social Security Number (SSN) are required. Acceptable photo identification includes a valid government-issued driver’s license, state identification card, or passport. Your SSN is necessary because lottery winnings are taxable income, reported to tax authorities.

A claim form must be completed. This form asks for your full name, current address, city, county, state, ZIP code, date of birth, contact phone number, and winning ticket information, including the prize amount.

Claiming Your Prize

The method for claiming your scratch-off lottery prize in North Carolina depends on the amount you have won. Prizes of up to $600 can be claimed at any authorized North Carolina Education Lottery retailer. Retailers have the discretion to pay these smaller prizes in cash, by money order, or with a store check. For these smaller amounts, additional identification is not required by the retailer.

For prizes ranging from $601 to $99,999, you have several options for claiming your winnings. You can claim these prizes by mail, at any North Carolina Education Lottery regional office, or at the lottery headquarters. If submitting by mail, the signed winning ticket must be sent along with a completed prize claim form and copies of your valid government-issued photo identification and Social Security card. The mailed ticket and accompanying documents must be received by the North Carolina Lottery within 90 days of the game’s official end date, as postmarks alone will not satisfy this requirement. The mailing address for claims is NC Lottery, PO Box 41606, Raleigh, NC 27629-1606.

Alternatively, prizes within this range can be claimed in person at one of the regional lottery offices located in cities such as Asheville, Charlotte, Greensboro, Greenville, Raleigh, and Wilmington. These offices operate during standard business hours, Monday through Friday. It is advisable to call ahead to a regional office to ensure they can accommodate your visit. Payment for these claims is usually issued by check.

Prizes of $100,000 or more require an in-person claim at the North Carolina Education Lottery Headquarters in Raleigh (2728 Capital Blvd, Suite 144, Raleigh, NC 27604). For larger winnings, you may start the claim process online before an in-person visit. The lottery may request public relations participation, as your name, city, county, and prize amount are public information unless protective orders are in place. Electronic fund transfers may be an option for receiving these winnings.

Tax Implications of Winnings

All lottery winnings in North Carolina are subject to both federal and state income taxes. For winnings of $600 or more, the North Carolina Education Lottery will issue a Form W-2G, which reports your prize to the Internal Revenue Service (IRS). Federal income tax withholding is applied to lottery winnings of $5,000 or more at a flat rate of 24%. This withholding also applies if your winnings are at least 300 times the amount of your wager.

In addition to federal taxes, lottery winnings are subject to North Carolina state income tax. The state applies a flat tax rate of 5.25% to taxable income, which includes lottery prizes. The North Carolina State Lottery Commission is required to deduct and withhold state income taxes from prizes of $600 or more. Even if you do not receive a Form W-2G, all gambling winnings must be reported as income on your federal tax return.

Winners of substantial prizes should consider consulting with a tax professional. A tax expert can offer guidance on managing the tax liability, including advice on estimated tax payments, which can help avoid underpayment penalties. It is important to maintain thorough records, such as W-2G forms, for tax reporting purposes. North Carolina does not permit the deduction of gambling losses on state tax returns, meaning state taxes are levied on gross winnings without offset for losses.