Welcome Guest
Log In | Register )
The time is now 9:33 am
You last visited October 21, 2014, 9:30 am
All times shown are
Eastern Time (GMT-5:00)

Lottery Taxes

Topic closed. 10 replies. Last post 6 years ago by mjwinsmith.

Page 1 of 1
PrintE-mailLink
DelmarvaChick's avatar - wallace
Ohio
United States
Member #68398
December 20, 2008
81 Posts
Offline
Posted: January 4, 2009, 10:55 am - IP Logged

Not that it would matter much because any jackpot amount would be signifigantly more than any amount of money I have now but....

I live in Ohio and we have MM.  If I played PB in another state, like Indiana or West Virgina or something, would I have to pay their state taxes on the jackpot and Ohio taxes or just the taxes for the state where I bought the ticket?

    Piaceri's avatar - sarsony1
    Wannabe Won Percenter
    Republic of Texas
    United States
    Member #57557
    January 9, 2008
    997 Posts
    Offline
    Posted: January 4, 2009, 11:14 am - IP Logged

    Each state taxes money earned that that state. Money earned outside the state is exempt - as I understand how Michigan income taxes work.

    But when you do win PB, contact a tax specialist to be sure.

    face

    singlewinnersinglewinnersinglewinner   

      psykomo's avatar - animal shark.jpg

      United States
      Member #4877
      May 30, 2004
      4637 Posts
      Offline
      Posted: January 4, 2009, 6:07 pm - IP Logged

      Not that it would matter much because any jackpot amount would be signifigantly more than any amount of money I have now but....

      I live in Ohio and we have MM.  If I played PB in another state, like Indiana or West Virgina or something, would I have to pay their state taxes on the jackpot and Ohio taxes or just the taxes for the state where I bought the ticket?

      WELCUM>>>>>>>>>NEW>>>>>>>>>MEMBER>>>>>>>>>2-D-world!!!!!

      If I buy GAS in TEXAS & travel 2 OHIO >>>>>>>>>>>>>>>>thru ALL>>!!!

      those outher>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>STATE'$$$$$$

      & 1 or 2 of them otter state's RAISE's DAR tax during D year I TRAVEL????

      DO I have 2 mail a chech 2 each state I BOUGHT>>>>>>>>>GAS???????

      ask>>>>>>>>>>>>>>YOUR>TAX>accountant!!!!!!!!!!!!!!!!!!!!!!!!!!

        GamerMom's avatar - tails

        United States
        Member #60535
        April 21, 2008
        460 Posts
        Offline
        Posted: January 4, 2009, 7:41 pm - IP Logged

        Each state taxes money earned that that state. Money earned outside the state is exempt - as I understand how Michigan income taxes work.

        But when you do win PB, contact a tax specialist to be sure.

        so let me get this straight...

         

        I live in Alabama, which has a state tax but play lotto in Florida, which does not. 

         

        If I win the lottery i would not have to pay Alabama state taxes on my winnings because the money was not earned in the state of Alabama?

          Avatar
          NY
          United States
          Member #23835
          October 16, 2005
          2838 Posts
          Offline
          Posted: January 5, 2009, 3:55 am - IP Logged

          Each state taxes money earned that that state. Money earned outside the state is exempt - as I understand how Michigan income taxes work.

          But when you do win PB, contact a tax specialist to be sure.

          That's not how it works in Michigan or any other state. Each state has the right to tax income from that state, and they have the right to tax income earned by residents of the state, regardless of where the income is earned. Whether it's income from a job or income from gambling, the state where the money is won will tax that income (assuming that state has an income tax, and taxes it's own lottery winnings). That income will also be treated as taxable income in the state of residence, but the taxes paid to another state are generally credited towards the amount owed to your own state. Whether or not you pay taxes to your own state will depend on the tax rates in both states. If the rate in your state is higher than in the other state you will still owe in your state. If the rates are lower the credit will cancel any taxes on the out of state income, but you'll pay more to the other state than you would have if you had won in your own state.

            Avatar
            Bondi Junction
            Australia
            Member #57242
            December 24, 2007
            484 Posts
            Offline
            Posted: January 6, 2009, 4:48 am - IP Logged

            If I win a major prize, is it tax-free?

            There is no tax payable on any prizes paid by NSW Lotteries.


            In Australia, all lottery prizes are tax free.

            Na Na Nah Nah Na Na Nah Nah!

              Avatar
              Alabama
              United States
              Member #17830
              June 27, 2005
              309 Posts
              Offline
              Posted: January 6, 2009, 10:31 pm - IP Logged

              so let me get this straight...

               

              I live in Alabama, which has a state tax but play lotto in Florida, which does not. 

               

              If I win the lottery i would not have to pay Alabama state taxes on my winnings because the money was not earned in the state of Alabama?

              I live in Alabama, too.  If you have lottery winnings over $600 from another state and are issued a IRS Form W-2G from that state (for Federal Tax purposes), you are required to pay Alabama income taxes on your winnings - even if you don't pay taxes in Florida.  See the section "Examples of Income You MUST Report" on page 7 of the tax instructions - http://www.ador.state.al.us/incometax/2008_forms/08f40bk.pdf:

               "Prizes and awards (contests, lotteries, and gambling winnings)."

              Actually, you are required to report any amount of lottery winnings as income (I do), and if you itemize, be sure to keep your non-winning tickets as documentation so you can take a deduction for gambling losses:

              From "Miscellaneous Deductions on Page 21:

               "Gambling losses to the extent of gambling winnings. Report gambling winnings on Form 40, page 2, Part I, Line 8."

              Also, if you ever decide to play in Georgia and have lottery winnings of $600 or more, you not only pay Alabama income taxes on your winnings, but you have to fill out a non-resident tax form and pay Georgia income taxes, too.  They also require you to attach a copy of your Federal Income Tax return to the GA non-resident tax form.  I had to do this once and it was a PITA.  You can get credit on your Alabama taxes for non-resident income taxes paid in another state.

               

              Check out the benefits of a Lottery Post Premium Membership!

              Want to know more?  >> Click Here <<

              Read what Platinum Members have to say:  << Click Here >> 

                GamerMom's avatar - tails

                United States
                Member #60535
                April 21, 2008
                460 Posts
                Offline
                Posted: January 6, 2009, 10:38 pm - IP Logged

                I live in Alabama, too.  If you have lottery winnings over $600 from another state and are issued a IRS Form W-2G from that state (for Federal Tax purposes), you are required to pay Alabama income taxes on your winnings - even if you don't pay taxes in Florida.  See the section "Examples of Income You MUST Report" on page 7 of the tax instructions - http://www.ador.state.al.us/incometax/2008_forms/08f40bk.pdf:

                 "Prizes and awards (contests, lotteries, and gambling winnings)."

                Actually, you are required to report any amount of lottery winnings as income (I do), and if you itemize, be sure to keep your non-winning tickets as documentation so you can take a deduction for gambling losses:

                From "Miscellaneous Deductions on Page 21:

                 "Gambling losses to the extent of gambling winnings. Report gambling winnings on Form 40, page 2, Part I, Line 8."

                Also, if you ever decide to play in Georgia and have lottery winnings of $600 or more, you not only pay Alabama income taxes on your winnings, but you have to fill out a non-resident tax form and pay Georgia income taxes, too.  They also require you to attach a copy of your Federal Income Tax return to the GA non-resident tax form.  I had to do this once and it was a PITA.  You can get credit on your Alabama taxes for non-resident income taxes paid in another state.

                Note to self:  Don't play lotto in georgia.

                 

                Thanks Bobb, that was very informative Cheers

                  Avatar
                  Alabama
                  United States
                  Member #17830
                  June 27, 2005
                  309 Posts
                  Offline
                  Posted: January 7, 2009, 11:56 am - IP Logged

                  Note to self:  Don't play lotto in georgia.

                   

                  Thanks Bobb, that was very informative Cheers

                  You're welcome!  Thanks for the drinks! Wink

                  Since we'll never have a lottery here in Alabama, we don't have many options for playing.  It's great that you can play in FLA.  I wish I could, but it's more than 3 hours to drive to the FL state line.  TN is more than a 2 hour drive, and GA is the closest for me at 96 miles.  We have family in GA that we go to visit once in a while, so I play then.

                    GamerMom's avatar - tails

                    United States
                    Member #60535
                    April 21, 2008
                    460 Posts
                    Offline
                    Posted: January 7, 2009, 12:06 pm - IP Logged

                    You're welcome!  Thanks for the drinks! Wink

                    Since we'll never have a lottery here in Alabama, we don't have many options for playing.  It's great that you can play in FLA.  I wish I could, but it's more than 3 hours to drive to the FL state line.  TN is more than a 2 hour drive, and GA is the closest for me at 96 miles.  We have family in GA that we go to visit once in a while, so I play then.

                    yw

                     

                    I live about 20 minutes away from the florida line...I work from home and get bored often so it's a fun little drive for me. 


                    With Riley initiating this anti-gambling task force i don't think we will get a lottery any time soon.  We are supposed to have something built called Country Crossings (http://www.countrycrossingalabama.com/)   down here, it's a music venue with electronic bingo to help fund it but Riley has scared away most of the investors.  Let's just say most people down here can't WAIT until the 2010 election Mad

                      mjwinsmith's avatar - moon

                      United States
                      Member #391
                      June 8, 2002
                      13867 Posts
                      Online
                      Posted: January 7, 2009, 12:17 pm - IP Logged

                      MrBobb, you do have other options, join my Player's Club and you will be able to play in other states.

                      Send me a PM {Private Message} and request an application to join. Thanks

                       >Michael