State Tax Question

Reply #5

TheGameGrl — Wed, 20 Jul 2005 23:55:57 GMT

PA is another state that applies the exemption rule :)As for my lovely neighbor state Maryland- they tax at all levels and take out the taxes due prior to issuing the winning. So state,federal, and county are each pre-taxed. Thus why when I play the MM from there I have to realize my winnings are taxed around 40% ( 35% federal, 4% state and 1-2% county) . I personally think they should let the person invest the tax the first year and then pay at years end.As someone mentioned- its not the stat... [ More ]

Reply #4

hosni — Wed, 20 Jul 2005 03:32:49 GMT

Just my 2 centavos worth. CA residents do not pay CA income tax on CA lottery winnings. We are only responsible to IRS. However, if I won a lottery in Arizona, I would have to pay CA income tax and maybe even AZ tax.

Reply #3

RJOh — Wed, 20 Jul 2005 02:54:39 GMT

If your winnings are from a lottery ticket bought in Ohio then you pay Ohio states taxes regardless of where you live. I think all states work the some way. If you don't want to pay state taxes on your lottery winnings then buy your tickets in a state that doesn't have state taxes and move before you win.RJOh

Reply #2

orangeman — Wed, 20 Jul 2005 02:07:44 GMT

Anything to avoid the clutches of the greedy bureaucrats would be considered a revolutionary act!Orangeman

Reply #1

SirMetro — Wed, 20 Jul 2005 02:02:29 GMT

As I understand the rules, no, it would be of no benefit.First, it would be considered Tax Evasion, which comes with some pretty stiff penalties.Second, as I understand it, each State that participates within the multi-state lotteries already have prearranged aggreements as to who gets what and how much, no matter what.Third, as I understand it, the State the Ticket was purchased in is the state who is responsible for collection and payouts. And I think they could care less where your current (o... [ More ]

State Tax Question

sirius — Wed, 20 Jul 2005 01:35:54 GMT

Let's say I live in a state which skims some of the jackpot winnings into its own coffers by way of state taxes and I hit 'the big one'... is it reasonable to change my place of residence to a nearby state which has no state taxes prior to my claiming the winnings? Thoughts? Pros or cons