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Pa. couple claims $128 million Powerball jackpot

Topic closed. 36 replies. Last post 5 years ago by NightStalker.

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HaveABall's avatar - rocket

United States
Member #72448
March 18, 2009
1227 Posts
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Posted: January 9, 2012, 6:54 pm - IP Logged

Maryland non-residents (winners are from Pa.) would pay 7.5% state tax, not great but better than Maryland residents (9.25%)

No, I believe the FINE print indicates that the Pennsylvania Lottery Headquarters will be required to make the following deductions before performing electronic finds transfer to winners:  Paying 7.5% Non-Resident tax to State of Pennsylvania, PLUS 1.75% (difference between 9.25% and 7.5%) "deficiency/differential" Resident Tax to State of Maryland.

So, one finds that the happy jackpot winners still end up paying a total of 9.25% in state taxes (between two states). This multi-state situation doesn't occur too often, so journalists don't know how to ask the right questions to the appropriate state's lottery payroll offices ...

Anyhow, it's still a lot of net monies after the approximate 44.25% in fed and states taxes are deducted this year 2012 and 2013 year at their next tax filing (or earlier)!  Congratulations to the winners!

Having several millions of dollars in my financial accounts means receiving several valuable services each day!

Disney

    Bondi Junction
    Australia
    Member #57242
    December 24, 2007
    1102 Posts
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    Posted: January 9, 2012, 10:55 pm - IP Logged
    I found it interesting to read, "The elated twosome, who chose to remain anonymous....", as I believe all winners should have the right to anonymity. However, the Pennsylvania Lottery's website states that winners can not remain anonymous, see below. I hope they have changed their policy.
     
     
     
    Can I remain anonymous although I’m a Lottery prize winner?
    Certain winner information is public under the state Lottery Law and Pennsylvania’s Right-to-Know Law. The Pennsylvania Lottery publishes the following information on its website in the Winners’ Circle:
    Name of the winner(s)
    City and county of residence
    Name of game won
    Date of win
    Prize amount
    The Pennsylvania Lottery must be accountable to the taxpayers and residents who benefit from Lottery-funded programs, and transparency of operations is key to the Lottery’s integrity. Providing winners’ information is also important to players who want to see the winners of the games they play.

    We all get a lot out of lotteries!

      Avatar
      Inland Empire
      United States
      Member #118116
      October 22, 2011
      316 Posts
      Offline
      Posted: January 10, 2012, 12:04 am - IP Logged

       In CA, you can't go anomymous.  That's what the winner's handbook says.

       Honestly, I am losing any hope to win big. But if I won a big one, there's not much to worry because my name is pretty <snip> common. :)

       

       

       

       

      This post has been automatically changed by the Lottery Post computer system to remove inappropriate content and/or spam.

        Avatar
        NY
        United States
        Member #23835
        October 16, 2005
        3474 Posts
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        Posted: January 11, 2012, 1:23 am - IP Logged

        No, I believe the FINE print indicates that the Pennsylvania Lottery Headquarters will be required to make the following deductions before performing electronic finds transfer to winners:  Paying 7.5% Non-Resident tax to State of Pennsylvania, PLUS 1.75% (difference between 9.25% and 7.5%) "deficiency/differential" Resident Tax to State of Maryland.

        So, one finds that the happy jackpot winners still end up paying a total of 9.25% in state taxes (between two states). This multi-state situation doesn't occur too often, so journalists don't know how to ask the right questions to the appropriate state's lottery payroll offices ...

        Anyhow, it's still a lot of net monies after the approximate 44.25% in fed and states taxes are deducted this year 2012 and 2013 year at their next tax filing (or earlier)!  Congratulations to the winners!

        That's not how it works. It's a Maryland prize, so the payment, and withholdings, will all be handled by Maryland. Since the income is from Maryland they're also the ones with the right to tax the incom, regardless of where the winners live. Since the winners are non-residents they'll pay Maryland income taxes at the non-resident rate of 7.5%. Pennsylvania, like most (probably all) states, allows a credit for income taxes paid to other states. Since even the non-resident rate in Maryland is higher than Pennsylvania's rate the credit will offset all of the tax that would otherwise be owed to Pennsylvania.

          HaveABall's avatar - rocket

          United States
          Member #72448
          March 18, 2009
          1227 Posts
          Offline
          Posted: January 12, 2012, 3:35 am - IP Logged

          No, I believe the FINE print indicates that the Pennsylvania Lottery Headquarters will be required to make the following deductions before performing electronic finds transfer to winners:  Paying 7.5% Non-Resident tax to State of Pennsylvania, PLUS 1.75% (difference between 9.25% and 7.5%) "deficiency/differential" Resident Tax to State of Maryland.

          So, one finds that the happy jackpot winners still end up paying a total of 9.25% in state taxes (between two states). This multi-state situation doesn't occur too often, so journalists don't know how to ask the right questions to the appropriate state's lottery payroll offices ...

          Anyhow, it's still a lot of net monies after the approximate 44.25% in fed and states taxes are deducted this year 2012 and 2013 year at their next tax filing (or earlier)!  Congratulations to the winners!

          Oh, I noticed that I accidentally typed "Pennsylvania" when I should have been typing "Maryland;" where the ticket was purchased. 

          Sorry and cheers ... it's another BIG, exciting solo ticket jackpot win! Eek

          Having several millions of dollars in my financial accounts means receiving several valuable services each day!

          Disney

            sirbrad's avatar - Lottery-062.jpg
            PA
            United States
            Member #22983
            October 6, 2005
            2226 Posts
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            Posted: January 18, 2012, 9:21 pm - IP Logged

            Anonymous? Since when can do that? How do we know they are even legit winners?

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              East of Columbus, OH
              United States
              Member #120843
              December 28, 2011
              447 Posts
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              Posted: January 23, 2012, 4:45 pm - IP Logged

              They are PA residents that bought the ticket in MD, so don't the MD rules apply?  I have no idea.What?

              Life's Too Short To Be Unhappy Cool