Welcome Guest
Log In | Register )
The time is now 11:34 am
You last visited July 31, 2014, 11:32 am
All times shown are
Eastern Time (GMT-5:00)

NJ State Tax on Lottery Winnings

Topic closed. 3 replies. Last post 1 year ago by noise-gate.

Page 1 of 1
51
PrintE-mailLink
ineed9million's avatar - scene sunovermountains.jpg
Philadelphia, PA
United States
Member #11436
February 13, 2005
176 Posts
Offline
Posted: April 20, 2013, 8:04 am - IP Logged

Last I checked the state tax on lottery winnings in NJ was 10.8%.  This morning I checked USA Mega for the current Powerball jackpot analysis and the site states the state tax is 3%.  Am I missing something?

    Todd's avatar - Cylon 2.gif
    Chief Bottle Washer
    New Jersey
    United States
    Member #1
    May 31, 2000
    21448 Posts
    Online
    Posted: April 20, 2013, 8:28 am - IP Logged

    The 3% is the amount the NJ Lottery withholds at time of prize payout. The withholding amount had not been "tested" by a big jackpot winner in NJ until this latest Powerball winner. That is why it has changed on USA Mega.

    The 10.8% was the top state income tax rate at the time the law was introduced in 2009. Currently, the top rate in NJ is 8.9%, so that is the final rate that somebody like the latest NJ Powerball winner would ultimately pay by the end of the year.

     

    Check the State Lottery Report Card
    What grade did your lottery earn?

     

    Sign the Petition for True Lottery Drawings
    Help eliminate computerized drawings!

      ineed9million's avatar - scene sunovermountains.jpg
      Philadelphia, PA
      United States
      Member #11436
      February 13, 2005
      176 Posts
      Offline
      Posted: April 20, 2013, 9:01 am - IP Logged

      Thanks, Todd!  Great info.

        noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
        Bay Area/ California
        United States
        Member #136482
        December 12, 2012
        1945 Posts
        Offline
        Posted: April 20, 2013, 10:19 pm - IP Logged

        Thanks, Todd!  Great info.

        It pays to know, and to think you got the answer for free.
        Hope you win that 9 million you after..and then some.
        Dance