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Oregon man claims $6.3 million Arizona Lottery jackpot

Topic closed. 18 replies. Last post 1 year ago by Drenick1.

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Egg Harbor twp.south Jersey shore
United States
Member #112968
June 29, 2011
3856 Posts
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Posted: October 4, 2015, 9:39 pm - IP Logged

There is a way around it. I was told my another LP member who also happens to be involved in the financial field that if you won and re-establish residency in a income tax free state like Florida or Texas prior to claiming in January 2016 then you would only be responsible for local taxes in the state you purchased your ticket and in your case with Delaware that would be tax free.

As long as you maintain residency for at least 183 days of a calendar year in a different state you will be fine. The only issue is being able to claim it before the ticket expires which in most case is at least 180 days. 10.8% state tax is awful lot of money to donate to your current state and going through this relocating scenario could be well worth the hassle.

 Sounds too easy, I could establish residency in the time it would take to get an apt. and swap a drivers license.

Waiting 183 days to claim would be the hard part, I think Delaware tix. are good for a year.

Delaware and Florida are both on my list of places to go win or not.

I would of course consult my tax guy, but I just don't see Jersey letting go that easy.

Extraordinary Popular Delusions & the Madness of Crowds    -- Charles Mackay  LL.D.

    Drenick1's avatar - villiarna
    USA
    United States
    Member #152799
    February 25, 2014
    1094 Posts
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    Posted: October 5, 2015, 10:30 am - IP Logged

     Sounds too easy, I could establish residency in the time it would take to get an apt. and swap a drivers license.

    Waiting 183 days to claim would be the hard part, I think Delaware tix. are good for a year.

    Delaware and Florida are both on my list of places to go win or not.

    I would of course consult my tax guy, but I just don't see Jersey letting go that easy.

    You actually won't have to wait 183 days. That is just the minimum required amount of days needed in a calendar year to validate your claim as a resident. Many folks who own homes in different states and have to adhere by these guidelines to claim their residency and exemptions i.e. homestead.

    If someone got lucky and won a large jackpot before the end of the year, it would be advantageous for them to establish residency in a tax friendly state prior to claiming their winnings early in 2016. Any additional federal taxes would then be owed in April, 2017.

      haymaker's avatar - Lottery-012.jpg
      Egg Harbor twp.south Jersey shore
      United States
      Member #112968
      June 29, 2011
      3856 Posts
      Offline
      Posted: October 5, 2015, 5:41 pm - IP Logged

      You actually won't have to wait 183 days. That is just the minimum required amount of days needed in a calendar year to validate your claim as a resident. Many folks who own homes in different states and have to adhere by these guidelines to claim their residency and exemptions i.e. homestead.

      If someone got lucky and won a large jackpot before the end of the year, it would be advantageous for them to establish residency in a tax friendly state prior to claiming their winnings early in 2016. Any additional federal taxes would then be owed in April, 2017.

      If I won this week, moved to Delaware and claimed early in 2016, wouldn't Jersey say

      "Hold on there, you still lived in Jersey when you bought that ticket"

      Extraordinary Popular Delusions & the Madness of Crowds    -- Charles Mackay  LL.D.

        Drenick1's avatar - villiarna
        USA
        United States
        Member #152799
        February 25, 2014
        1094 Posts
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        Posted: October 5, 2015, 8:07 pm - IP Logged

        If I won this week, moved to Delaware and claimed early in 2016, wouldn't Jersey say

        "Hold on there, you still lived in Jersey when you bought that ticket"

        If you established residency in a different state prior to having your attorney claim your prize there would be no reason for NJ to stake a claim for your taxes. A lot of people relocate and are never held liable for their previous state's income tax when they are filing their taxes and shown that they have resided in the new state for over 183 days/half year.

        In your case if you relocated this year and presented your claim in 2016 and more than likely resided for the majority of the year in your new surroundings there should be no issues period. If the state you are relocating to doesn't permit anonymity then they will simply disclose that so and so won from the city and state listed on your new drivers license.