I have a client who received a large W2-G from NY lotto and ran it through an LLC. I am attempting to work through the forms and when i am carrying this over to the personal return it is triggering the additional Medicare Tax. Is this accurate being that its lotto winnings (Which don't trigger this on a personal W2-G)? Or is he stuck being that he ran it through an LLC? Should we simply report it personally? Main issue is he split the winnings with other individuals and was advised the LLC route to provide everyone a K-1. 

There was also sizeable withholding run through the LLC which i am not sure if to just move to his personal return or if there is a way to have it placed on the K-1 to pass through. 

I haven't dealt with a situation with gambling winnings going through an LLC with large withholdings and the way I'm entering it as other income is making the additional Medicare tax appear and the withholdings are showing as a LLC refund rather then a pass through.

If we need to abandon the LLC and eat the tax for the other payments to individuals it is what it is, just want to make sure I am not missing something. 

Any help is appreciated.

Thank you.