Ga. maintenance man wins Mega Millions lottery jackpotPrevious TopicNext Topic

I sure would like to know  Mr. Chason's birthdate and time or view his horoscope and have a horoscope of the time he bought the quick picks. Being an astrology buff, I know that there are some very lucky times in everyone's life.  It may not be in the plan for everyone to become a millionaire but I know astrology can help pinpoint the best times to win something. Blackapple and Libra Dave can attest to that. I will bet that Pluto was making some great aspects in Chason's chart. Pluto rules one in a million type occurences and maybe Jupiter was involved as well. Astrologers please comment.

Your tax liability would be based on when you are actually paid the money. If you establish Tennessee residency prior to claiming the ticket, then you would be claiming it as a Tennessee resident. However, don't be surprised if Alabama tries to take some money from you too. Believe it or not, states define a resident differently, and can have multiple types of residency (voting vs. taxes). Unfortunately, it's illegal, but you would have to literally make a federal case out of it, and you'd probably loose anyway because the feds seldom take up such issues. See the case where the telecommuter from Tennessee was forced to pay New York taxes on his salary despite never going to New York.

I think I remember reading that someone presented a ticket for validation but did not claim till after they got their ducks in a row.  Also have heard of putting is a plastic bag and freezing.

Thanks rdc

I know that states tax entertainers (football players, singers, Rush Limbaugh) when they are in state That's why Rush moved to Fl and hates it when there is a hurricane and he has to go to NYC.  Had not heard you can be taxed on telecommuting when you never went to state.  I have friends that live in TN and work in AL and have to pay AL tax.

Most people think that their tax liability is dependent on their situation when they collect their money, but courts have decided many times that it depends on their situation when they win the money or even when they bought the ticket some time.  Collecting the money after they get divorced doesn't eliminate their spouses share and collecting the money after moving doesn't eliminate their state or city taxes.  Most states and cities calculate taxes owed them on a percent of your total yearly income for the potion of the year you were a resident regardless of when you earned or collected the money so both states would get a share if they have such taxes.

The whole tax thing puts a serious damper on the lottery. I don't think they should get a thing after the 25% deduction, which is still even too much. I also doubt they continue taking 10% a year, because they would slowly deplete you of your fortune.

Especially if you choose not to collect interest, they can't touch your money. The ones to talk to are tax professional for the facts. As far as systems go, yes sometimes they tend to inhibit your progress. That is why I also have a system, get QP's frequently. They play numbers that most system users never would, and numbers that come up more often.  

This is a great story. Did he pick cash? I hope he doesn't have financial problems later in life.

WTG...THAT'S A LOTTA DOUGH!!!

Hello  hsvscubaski,

Becuase they don't believe they will won . The winner also like us when they are not a winner yet.

Just always check the tickets....

For the winner of this time, he is 52, and I think most of us in here is younger than he ...let's dream on and be patient!!!

Congrats, Ben Chason, and good luck!

Yes, he picked cash.

ya think? i should think massachusetts being richer than other states should be able to spend more on the lottery, ah well, i'll start buying $10 of megamillions on a single game once in a while

The first sentence of your advice is almost certainly incorrect. Tax laws will be slightly different in each state, but the purpose of states' tax laws are to get what they can, and they've had years to figure all the angles and tweak the laws to their advantage. For the most part, if you earn income while living in a particular state you will owe tax on that income. You don't owe taxes because you claim a lottery prize, you owe taxes because you win a lottery prize. In some cases you may be able to defer income and taxes until the following tax year, but the law isn't likely to allow you to avoid the tax comletely. A good rule of thumb is that you earn the income, and therefore become liable for the taxes, as soon as you are legally entitled to the income. If you win the lottery in early December and don't claim the prize until January, you may be able to pay the taxes in the following year, but you will have incurred the tax liability the moment your numbers were drawn as the winner. In the example of TN and AL, unless the legislators in Alabama are unusually stupid, an Alabama resident who wins the lottery will owe taxes to Alabama regardless of how long they wait to claim the prize, or where they are living when they claim the prize. If you were a resident when you became entitled to the money then it's income earned as a resident of that state. Short of poorly written tax laws, the only chance of avoiding state taxes by moving would be if you move before December 31st and the lottery won't pay out for long enough that you can't get paid until after January 1st, but I still wouldn't be too optimistic.

You're right about states having a different opinion on residency than individuals do. Tax laws aren't really based on residence, they're based on domicile, and there's a legal difference. If somebody moves in order to reduce taxes they need to sever their connection to their former state as thoroughly as possible. If you move but don't sell the home you were living in you can expect the taxman to come calling. Undeveloped property may be claimed as an investment, but if you've shown an intent to build a home on it, you can expect the taxman to come calling. If you come back for vacations or repeatedly visit your parents or children in your old state, you can expect the taxman to come calling. If your income is substantial and you completely sever your ties to your old state, you should expect the taxman to look for a reason to come calling.

Taking the annuity instead of cash might let you reduce income taxes. If you win a lottery run by a state  that taxes lottery winnings you should expect to pay taxes to that state regardless of when you actually collect the money, and if you live in a different state you should expect to pay taxes to that state, too. If you win a lottery run by a state that doesn't impose income tax on lottery winnings but live in a different state you should expect to pay taxes to your home state on any income earned while you are a resident of that state. Income earned after moving out of the state may increase your taxes for any part of the tax year in which you were still a resident, but you may not owe anything for years in which you don't live in the state at all. If you win an out of state jackpot this Saturday and take the annuity you should expect to pay taxes to your current state on the first payment, which you'd be entitled to collect this year.  If you then become a non-resident before the end of the year the state should have no claim on your income in subsequent years. Still, I wouldn't guarantee that you'd be home free. The state may still make the claim that the income was earned as a resident, even if it isn't payable until some time in the future.

I'm not familiar with the telecommuter case you refer to, but it's a pretty safe bet that the court (assuming it even made it to court)  determined that the income came from New York. If you telecommute to a job, the job exists in the office you'd be working in if you didn't telecommute, and the income comes from wherever the office is. That's a completely different issue from cases where somebody moves but is still deemed a resident for tax purposes.

These are just a few of many examples suggesting that anybody who wins the lottery and doesn't get qualified professional advice is probably a moron. Anybody who actually makes significant financial decisions based on advice they get on the internet is definitely a moron.

Being richer, they can probably afford to buy more crack, too, but I'm guessing there's something more than disposable income that people consider when deciding what to spend their money on.