N.J. increases initial state tax withholding on lottery winnings

Comment #20

ressuccess — Sat, 09 Jul 2016 18:27:32 GMT

Well unfortunately someone in Indiana won the Mega Millions jackpot.

Comment #19

SWS050 — Fri, 08 Jul 2016 21:10:04 GMT

What I don't get, and I can't find any information on the internet, but I always thought a portion of the initial dollar already went to the state? Even if it .01 cent. If that is the case and they collect on lottery winnings as well, isn't that double taxation? Just curious if first fact is true. I thought maybe California didn't have a tax because of that reason.

Hmmmmm. Good luck to all who play mega tonight. I wish you all luck. Our company lottery pool driver can't get to Wyoming t... [ More ]

Comment #18

Todd — Fri, 08 Jul 2016 21:01:10 GMT

Oh my gosh, no. California has a horrendous financial situation. The problem with taxes is not that the rich are paying too much (like they do in California), the problem is states like California that spend too much.

Comment #17

Kingofearth — Fri, 08 Jul 2016 20:49:08 GMT

UMMM.. California has a surplus and a stable budget as a result of raising taxes on the rich. Meanwhile states like Kansas and Louisiana which cut taxes on the rich dramatically are economic wastelands and completely destroyed.

Comment #16

Bleudog101 — Fri, 08 Jul 2016 20:13:16 GMT

I meant that the tax rates go one direction=UP! OTH it is money you wouldn't have had you not won a big jackpot. In that respect it is moot point I suppose. Good Luck to you, Todd.

Comment #15

Drenick1 — Fri, 08 Jul 2016 18:41:25 GMT

I'm guessing your democratic leaders don't want to stir the pot as they already have a top tier income tax rate of 13.3% for the highest earners. With their fiscal budget in disarray it is only a matter of time before they implement a income tax on lottery winnings. The only reason they haven't done so is that it would be just a fraction of the income tax they collect from working folks. Lottery players in California can count their blessing for the time being.

Comment #14

MaximumMillions — Fri, 08 Jul 2016 18:01:14 GMT

Do I understand it correctly then that the only real disadvantage is in having your taxes due immediately and thereby having less interest gaining principal

Comment #13

RedStang — Fri, 08 Jul 2016 17:53:51 GMT

It's probably better this way. There's a lot of winners who go on sprees and have nothing left come April.

Comment #12

music* — Fri, 08 Jul 2016 17:18:20 GMT

When a LP Member wins big he/she will need professional tax advice ASAP. Hire a CPA, Accountant, or an Enrolled agent.

Comment #11

music* — Fri, 08 Jul 2016 17:14:44 GMT

I understand you, Todd. Here in California, I am thankful for the Democratic leaders in our legislature and the Governor for keeping the, No taxes on Lottery winnings in California policy. It is a big break for us.

California governments will get money when I start spending my jackpot.

Comment #10

edmunddantes13 — Fri, 08 Jul 2016 16:53:52 GMT

Technically, it's always due every quarter.

The US has always been a pay as you go tax entity.

April 15th is just accounting day. This is the day that you go back and show I earned this, I paid this throughout the past year, this is what I should have paid, and this is what I/YOU owe YOU/ME.

I.e. every quarter you pay the taxes on the income you earned in that quarter.

For most people that have a wage job that does withholding's from their paycheck, this all happe... [ More ]

Comment #9

rcbbuckeye — Fri, 08 Jul 2016 13:32:54 GMT

Notice where he emphasized the word when ?

I am glad I live in a state that doesn't have an income tax.

Comment #8

Todd — Fri, 08 Jul 2016 13:24:05 GMT

Can you explain how it is terrible news? I mean, personally I would rather do the old arrangement, but in the scheme of things I don't see it as a major blow. And you know I'm all about paying lower taxes on lottery prizes.

Comment #7

Bleudog101 — Fri, 08 Jul 2016 13:15:26 GMT

Todd,

That is simply terrible news for lottery winners.

Comment #6

Todd — Fri, 08 Jul 2016 13:10:12 GMT

I tried to make it clear in the article, but everyone should be aware that this does not change the amount of taxes you will owe for winning a jackpot in NJ. It only affects WHEN the majority of the taxes are paid.

I think the top rate in NJ is now 8.9%, so assuming you would pay exactly 8.9%, the new rule means you would pay 8% at the time the jackpot is paid out, and then the additional 0.9% by April 15. Under the old rules you would pay 3% at the time the jackpot is paid out, and the addit... [ More ]

Comment #5

jjtheprince — Fri, 08 Jul 2016 11:06:24 GMT

I don't think it will hurt sales because New Jersey is a Can't lose state. I'd rather win and pay a higher tax rate than not ever win at all.

Comment #4

Bleudog101 — Fri, 08 Jul 2016 11:00:05 GMT

Seems like they have a million dollar winner every week lately.

Is this fat azz Christie's idea

Comment #3

jjtheprince — Fri, 08 Jul 2016 10:57:46 GMT

And this is what happens when a state has way too many winners lol.

Comment #2

Kingofearth — Fri, 08 Jul 2016 03:00:58 GMT

Creating jobs costs money, money that is raised through taxes. So essentially you want the government to do exactly what it's doing?

As for the article, NJ just lost a lot of NYC people who go to NJ specifically because it's much cheaper (withholding wise). It'll come back to bite them because the lottery is one part of the economy where cheaper is better.

Comment #1

music* — Fri, 08 Jul 2016 01:46:14 GMT

If the States want more income then they should create more jobs. Better paying jobs.

N.J. increases initial state tax withholding on lottery winnings

Lottery Post — Fri, 08 Jul 2016 00:53:00 GMT

But does not affect what winner would ultimately pay in state taxes

If someone buys a winning ticket for Friday's $540 million Mega Millions game in New Jersey, the state will be collecting more money at payout than it would have last month.

Under the new rates, winnings greater than $10,000 up to $500,000 will have 5 percent automatically withheld, and prizes above $500,000 will face an 8 percent withholding. Previously, prizes greater than $10,000 faced a withholding of 3 percent.

The... [ More ]