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N.J. Lottery goes from zero to highest tax rate in the USA
Dallas, TX United States Member #55038 August 23, 2007 249 Posts Offline
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| Posted: July 3, 2009, 9:17 pm - IP Logged |
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Ohio United States Member #3080 December 14, 2003 3771 Posts Offline
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| Posted: July 3, 2009, 9:23 pm - IP Logged |
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NY United States Member #24178 October 16, 2005 1803 Posts Offline
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| Posted: July 3, 2009, 9:52 pm - IP Logged |
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When you mention "constructive possession"----isn't that open to interpretation. In the news you hear of people who buy tickets and then stash them in a shoe box and sometimes they wait until the last minute to cash it in. Also if you look at the back of your lottery ticket it clearly states it is NOT valid until signed and verified by lottery officials. As long as you don't sign it or post a claim at lottery HQ...isn't the ticket simply a piece of paper you bought for $1. It isn't really worth millions---technically---until you sign it and visit the folks at lottery HQ who verify it.
Also don't the IRS and state taxation/revenue departments depend on the 1099-G to confirm that a taxpayer is required to pay taxes?
Using my prior example: If I were to move to another Maine and claim residency in that state to get away from NH.....does the lottery headquarters have any way to prove you are avoiding a tax in another state? If you buy a ticket in MAINE and then move and establish residency in MAINE and wait 8-12 months before making your claim won't that make it difficult for NH to track you or tax you. Especially if the timespan crosses over different fiscal yrs. Your DL license and physical address at the time you claim at lottery HQ will state you are from Maine. Also since you purchased the ticket in Maine. How would the lottery HQ folks know that you lived in NH a yr ago and how will they know to send a 1099 to the folks in NH? Aren't 1099s only issued to the IRS and to the state you purchased the ticket/state you live.
I guess it all goes back to "constructive possession". Is "constructive possession" when you purchase the ticket bearing instrument. Is "contructive possession" when the ticket becomes a winner. Is "contructive possession" when the winner actual claims the ticket and associated assets. Is "constructive possession" when the winner realizes his ticket is a winner? Once again keep in mind the shoebox analogy. People are notorious for stashing tickets in a shoebox and waiting until the last minute to verify it. Often people don't realize they have a winning ticket until days before the deadline. Constructive possession isn't any more open to interpretation than "income." Nobody says ypu need to cash your paycheck right away, but I can't imagine you would honestly try to claim that you didn't earn the income until you actually get around to cashing it. As I said, you may be able to put it off for up to 60 days, but other than that it's pretty much written ins tone as far as the IRS is concerned.
"As long as you don't sign it or post a claim at lottery HQ...isn't the ticket simply a piece of paper you bought for $1."
I see two possibilities here. You know that's a ridiculously stupid question, or you'd be thrilled to sell your $1 ticket for $50.
Sure, it might not be easy for NH to find out that you bought a Maine ticket while you were still a resident. I didn't say it's difficult to cheat on your taxes, I simply explained the rules. If NH does find out (and I wouldn't be at all surprised if they specifically check winners in nearby states to see if those people might be, of have been NH residents) you can expect that they'll prosecute you for tax evasion. Even if you don't go to jail you can expect the fines and interest (and fees for a defense attorney) to make you wish you had just paid your taxes up front.
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Pennsylvania United States Member #17377 June 10, 2005 1535 Posts Offline
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| Posted: July 3, 2009, 10:25 pm - IP Logged |
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Somehow lost in the numerous posts in this thread is the fact that the state is already taking out about 50% of the money wagered as a house edge. Now they want more. Johnph77, Sorry others didnt catch your simple yet accurate statement. I caught it and agree that they already got there slice of the pie. ________________________________
The most powerful statements are said with few words.
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Crockett, Texas United States Member #12596 March 12, 2005 20 Posts Offline
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| Posted: July 3, 2009, 10:31 pm - IP Logged |
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I thought of doing that but I'm too afraid to see how much money I actually spent in a year on the lottery....seeing that total may just make me pass out!!! I'm saving all my losing scratchers and numbers tickets and I almost have enough to wallpaper my house. :)
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United States Member #35330 March 9, 2006 37 Posts Offline
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| Posted: July 3, 2009, 11:42 pm - IP Logged |
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Just not much public compassion for lottery winners I guess! Perhaps Geico should consider replacing "Cave Man" with "Lottery Winner" in their advertising campaign.
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Bondi Junction Australia Member #57721 December 24, 2007 272 Posts Offline
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| Posted: July 4, 2009, 1:50 am - IP Logged |
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Maybe the residence of N.J. should vote with their pockets, and telephones, and switch to the Massachusetts lottery games, which are available out of state by subscription!
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United States Member #61017 April 21, 2008 371 Posts Offline
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| Posted: July 4, 2009, 9:39 am - IP Logged |
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I can understand them changing it but not making it RETROACTIVE. If i win I will make sure to set aside some $$$ to pay my taxes when the time comes because my state has a state tax. But it seems grossly unfair to say oh wait you remember that money you already spent to pay off your house and bills? Well now you have to pay taxes on it. What if they have none of the $$ left. I'm talking about the people that won low tier prizes here. If I won $10,000 it would be like a drop in the bucket so I would have already put it towards my house or credit card bills. When tax time came around if I wasn't expecting a tax on winnings I already spent I would have no way to pay it. I just can't believe they would make it retroactive. Sickening.
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Midlands, SC United States Member #70200 January 14, 2009 204 Posts Offline
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| Posted: July 4, 2009, 10:42 am - IP Logged |
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I'm saving all my losing scratchers and numbers tickets and I almost have enough to wallpaper my house. :) I'm glad to know I'm not alone. 
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Midlands, SC United States Member #70200 January 14, 2009 204 Posts Offline
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| Posted: July 4, 2009, 10:44 am - IP Logged |
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Just not much public compassion for lottery winners I guess! Perhaps Geico should consider replacing "Cave Man" with "Lottery Winner" in their advertising campaign. Good One!! I totally agree...and I haven't even won big....YET!!!
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West Virginia United States Member #72153 March 1, 2009 116 Posts Offline
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| Posted: July 4, 2009, 1:44 pm - IP Logged |
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I'm so glad I moved out of NJ. "Bless me Lord, so that I may be a blessing to others."
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Ohio United States Member #60163 March 24, 2008 55 Posts Offline
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| Posted: July 4, 2009, 7:35 pm - IP Logged |
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This is how The politicians especially Democrats operate. They stay under the radar by sponsoring bills such as this, to stay corrupt without being in the limelight. Now is the time to show how corrupt they really are. Wake up people.....!
Truly pathetic...!!!!!! I would say the same about Republicans. I do believe this is something the Republicans cooked up.......a bunch of bushwhacks that need their money and those same Republicans continue to bankrupt the people...they did enough damage for the last eight years.
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United States Member #77236 July 4, 2009 2 Posts Offline
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| Posted: July 4, 2009, 9:56 pm - IP Logged |
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I'm happy because New Jersey have won more Jackpot than any other states. Thats good. I was hoping something like that was gonna happen and it did. Thanks God
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United States Member #3864 February 21, 2004 45 Posts Offline
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| Posted: July 4, 2009, 11:49 pm - IP Logged |
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sheeler, that's real mature. i think this tax is an outrage and im considering boycotting the lottery and not buying anymore tickets. this takes the fun out of winning.
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New Member  Atlanta, GA United States Member #71749 February 21, 2009 4 Posts Offline
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| Posted: July 5, 2009, 10:17 am - IP Logged |
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A few Republicans have used these antics as well. Pride and Political lies don't discriminate, I'm sure we all have numerous example we could cite.!
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