|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.