Wow I can't believe the District of Columbia would change the income tax rules on lottery prizes just so they could have a piece of the pie.  And 8.5%!!!!  That is insane for a state tax.  How can they institute that afterwards.

Brad

Congratulations to the winner!!!  Brilliant strategy keeping his identity hidden, especially at his age!!! 

Shame, on greedy DC!!!!!!!!!!!!!!

Shame, on greedy DC!!!!!!!!!!!!!!

What?!!! Did anyone expect anything different from a Democrat party controlled area?!!!  Tax and spend baby....TAX and spend!!!  The saw two good things coming and had to change the rules to their advantage.  Another reason I would only visit DC ON BUSINESS ONLY....never to just take a vacation there.

I think I need to relocate myself to a state like Texas....Republican controlled....no income tax.  Would have picked Florida, but it is too close on the line between Demo/Repub control....still no income tax but as DC has shown, those things can be changed at your politicians whim.

Sounds like some mess that crooked NC lottery would do.

Way to go!  Smart Man wait a couple of weeks get everything in order and claim with a lawyer.  This is exactly how I plan to claim my jackpot..One Day...LOL.    But this guy shouldn't be too hard to find....he'll be the old guy with the huge smile surronded by hot blondes in the hot tub at a five star hotel!  Oh wait that would be me again...after my jackpot!  HAHAHAHA

 I wish the ole fart tons of luck and I hope he manages to keep it secret for the rest of his years

Income tax in DC is 8.5%, which he would have to pay anyway at the end of the year anyway, they are just getting it upfront (still kinda pathetic that they would change the law based off of one guy). DC considers lottery winnings personal income, so eventually he would have to pay it.  And if he were a smaller winner, I would be worried that he wouldn't set aside that extra few million and at the end of the year he might find himself not being able to pay it if he overspent while celebrating.

Though it seems to me any small state or district like DC should be giving him tax discounts to maintain residence in the District.  DC is a pretty tight knit community, especially Southeast, and as long as he continues to live there, that extra money he spends within the city could really help bolster his local communities economy.  And southeast is one of the bleakest neighborhoods in DC.  Its not like Northwest where people are already super rich.

I live in DC, and the reason the tax rate is so high, as it is in bordering Montgomery County, Maryland, and Northern Virginia, is because the same Job in the DC metropolitan area pays about 25-30% more than it would in other neighboring markets(I'm sure there are exceptions). Not that its a fair reason, but thats how they can get away with it, without people here freaking out.  I wouldnt move to a different area because overall I would bring home much less, even with lower taxes, and gas prices negate any long commute benefits.

The unfortunate thing is that while that tax money gives Montgomery County, Md and Northern Virginia some of the best ranked public schools in the nation, DC's public schools are not much better than penitentiarys for children.  So who knows where they are spending their money.  Then again most people who work in DC dont live there unless they are above middle class, so maybe the large population of poor negate any benefits of a higher tax rate.

Just info for the curious.

I have several issues with this article.

First is the comment, "The move frustrates reporters in the media seeking to reveal his personal story, but safeguards his identity, which would be compromised once he is known to the world." The phrasing conjures images of legions of evil reporters huddled in an underground lair, wringing their hands and muttering, "Curses! Foiled again!!!" Why does the media place so much importance on shoving their noses where they clearly do not belong? One could argue that, since the lottery is a public agency, the people have a right to know who won. I disagree; the only thing the people have a right to know is that the prize money was won legitimately, and the winner's name should be revealed only when a major prize is won by someone already in the public eye, such as a celebrity or public official. With those exceptions, any winner of a major prize should have the right to protect himself, his identity and his family from fortune-seekers, scam artists or other predators.

To my knowledge, Washington, D.C. still has no governor, no senators and no congressmen to represent their residents and homeowners so, as far as I'm concerned, they're not entitled to anything until that situation is properly addressed. Then, to add insult to injury, they impose an "emergency rule" to withhold (steal) a significant portion of this man's rightful property nearly a full year before any taxes are due and payable, just in case he should decide to relocate to another area. There's no way the winner can fight that in court without revealing his identity, thus endangering himself and his family. By stealing his money now under the guise of legal taxation, the winner is essentially screwed out of several hundred thousand dollars in interest income that would have accrued over the next year. $6.8 million would generate around $340,000 when invested in a one-year Certificate of Deposit paying 5% APY. That's not taxation; it's overt grand larceny. "The man is a widower, with 10 children and 47 grandchildren and great-grandchildren." What would lead these IRS paranoiacs to believe he's going anywhere? Did he run to U-Haul or Ryder and rent thirty large trucks?

Those who still believe this is a "free" country should take heed. Using political logic (which is diametrically opposed to common sense), I can see congress allocating funds for state border fences and checkpoints very soon, which will be designed to prevent current residents from moving out-of-state without proper authorization (see "Papers, please, NOW!!!" on Rick G's blog). 

Anyway, the guy seems to have his priorities straight. All three trusts are exempt from future taxation (brilliant!), and none are set up to provide his family with a direct income. He deserves our congratulations, and I wish him and his family the best of luck in the future.

Proof that $1.00 is all you need to win.

Congrats to the winner and his family! Smart move with the corp lawyer claiming.

For those who may not know, here's some basic information about Washington D.C.  It's a city, not a state. Like other cities, it doesn't have a governor, senators or congressmen. Like other cities, it does have a mayor and a city council which function the same as other city governments. Like many other cities, it imposes an income tax on its residents, but unlike every other city in the country, it isn't part of a state, and therefore it can't collect a dime in revenue from a state income tax. Unlike residents of other cities, residents of D.C. don't pay a state  income tax in addition to the city taxes. Like the states, D.C. has it's own treasury department that collects income taxes. The rules and regulations regarding those taxes are determined by D.C.'s own gevernment and have nothing to do with the IRS, which is a federal organization that collects federal taxes and has no control over state or city tax rules.

As is true in most (probably all) other tax jurisdictions, D.C.'s tax regulations require those whose taxes aren't withheld by an employer to make quarterly estimated tax payments based on their income. The second paymentis due on 6/15. I find it hard to believe that the tax regulations didn't already require tax withholding on significant lottery prizes, but the winner would have been required to make an estimated payment by 6/15, anyway. At worst, the new rule has required him to pay the tax 6 weeks earlier than before the rule went into effect. In any case, they certainly didn't steal his money.

10 kids and 47 grandkids? I could't think of a more deserving family. I hope that the money does not tare apart the family.

A buck and a dream is all it takes : )

Bravo for him, Good idea i wouldn't want my family to know about my

winnings.  Keep everything on the  downlow!

He's  doubly lucky.....wins the powerball.....doesn't have a stroke after finding out......he won the lottery!!