State Tax on Lottery Win

Reply #21

dvdiva — Tue, 07 Feb 2006 07:55:07 GMT

It depends on the aliens being foreign nationals or extraterrestrial.

Reply #20

acme — Tue, 07 Feb 2006 04:35:53 GMT

Is withholding tax for aliens 30% (i belive i saw that in somewhere) or 35% as well

Reply #19

TheGameGrl — Tue, 07 Feb 2006 00:06:30 GMT

The 25% is the minimum that the States can with-hold on the High end winners for federal taxes.( Those with $50k and above in claims).

The states only do this to stay on the good side of the fereral government. Technically ( and its yet to be challenged) you dont have to claim your tax or pay in til the end of the year. So the taking of the 25% is merely an act of good faith that the claimant WILL have to pay in some sorts by years end. Even a good tax attorney will tell you that prepaying

Reply #18

CASH Only — Mon, 06 Feb 2006 19:23:01 GMT

Isn't the current Federal withholding 25% (unless it changed January 1

Reply #17

LOTTOMIKE — Mon, 06 Feb 2006 12:11:01 GMT

i just took a hit on the amount of money i would've gotten back on my taxes because of lottery wins of 5,000 in 2005.i wrote about it in my blog.......

Reply #16

justxploring — Mon, 06 Feb 2006 06:24:13 GMT

Prisoner Six: I also plan to claim it anonymously through a trust or a corporation, using an attorney to represent me in collecting the ticket. Another thing I also plan to do is not quit my job right away until after the excitement dies down. If I all of a sudden quit after a big win, it will raise a red flag.

Very few states will let you remain anonymous, although you can keep yourself out of the spotlight. People here who have claimed their winnings through an attorney and in the name... [ More ]

Reply #15

dvdiva — Mon, 06 Feb 2006 04:29:16 GMT

It means that it will amount to roughly 35%. It will be a little lower but not by much. If you give it away to a charity then there is no gift tax nor if you put people on the claim ticket initially. While the lottery will deduct 28% many winners would recieve an unpleasant surprise because they would be expected to file a quarterly tax report and most are just used to w-2 deductions.

You would have to tack on state and city income tax as well.

Reply #14

Chewie — Mon, 06 Feb 2006 03:33:45 GMT

Sounds to me like youi are planning on winning a jackpot, then living your life in fear of discovery. You'll be rich and can afford to go public. Look at the Fortune 1000. None of them hide in secluded place. As soon as the puiblicity dies down, you'll be like every other millionaire out there - and there are a lot of them. Until then, hire a dozen rent-a-cops to keep the beggers and petty criminals at bay. Caring cash is not the answer. You'd have to have dozens of suitcases full of mon... [ More ]

Reply #13

PrisonerSix — Mon, 06 Feb 2006 03:16:54 GMT

I have something of a strategy planned. I'll probably relocate to somewhere nobody knows me, buy a nice, but not too fancy house, new cars, etc., and just enjoy life. I also plan to operate on cash as much as possible, don't want anyone trying to track down who I am or what I have. I don't plan to be a Jack Whittaker.

I also plan to claim it anonymously through a trust or a corporation, using an attorney to represent me in collecting the ticket. Another thing I also plan to do is not quit... [ More ]

Reply #12

Chewie — Sun, 05 Feb 2006 16:51:32 GMT

If you're going to bet on the lottery, or any other ganbling event, you should start planning/researching your strategy now - not after you win. (If you don't plan on winning, why play?) It may be too late if you wait. Most people plan on how to get to work every day, but never give a second thought about a multi-million dollar increase in their lifestyle - even though they spend money to win.

Reply #11

PrisonerSix — Sun, 05 Feb 2006 16:38:43 GMT

My understanding is state income tax laws vary from state to state, and some states have no state income tax at all. In my state, Louisiana, anyone who earns income here has to pay state income tax on it, regardless of where they actually reside. In other words, if you commute across the border from MS, TX, or AR to work, you have to pay Louisiana state income tax.

If one lives in Louisiana all year long and works in another state, they are still liable for Louisiana state income taxes. On... [ More ]

Reply #10

Chewie — Sun, 05 Feb 2006 13:01:26 GMT

Justxploring: Then they expect you to pay a huge Gift Tax if you want to give it away!

Never give money away. Hire the person, sign a contract, pay them what you want, fire them. Think Disney! They do it all the time. Buy a condo in Hawaii, hire grandma and grandpa as caretakers. Buy a condo in NYC, hire mom and dad as investment consultants; researching investments in Broadway plays. Buy a condo in Los Angeles for your brother and let him consult on land leases in Bel Air. If B... [ More ]

Reply #9

Chewie — Sun, 05 Feb 2006 12:45:14 GMT

When I hit Powerball, in Pennsylvania, I will move to Pennsylvania the day of the drawing. If I stay in New Jersey, I'll wind up paying NJ 12% on ganbling winnings. Since I plan to move to greater places after a win any way, moving immediately, for s hort time, wouldn't bother me a bit. $10M-$20M in taxes or move immediately and pay $0 in taxes - decisions, decisions! Rent some place, some where, get your drivers license, register your vechicle, and wait a month or two, then claim the money.... [ More ]

Reply #8

Chewie — Sun, 05 Feb 2006 12:36:54 GMT

Actually, you may be wrong! NJ doesn't take taxes IF you play and win in NJ. You play and win in another state; they are coming after you for maximum taxes. So if I win in PA, I am clean in PA, but NJ will begin sending me love letters. I emailed NJ State Treasuer, and that is what they said. You might want to get your opinion in writing.

Reply #7

justxploring — Sun, 05 Feb 2006 08:30:08 GMT

Can someone answer this for me? I'll read many posts about tax and people use 25 or 28% for federal tax. I believe the Federal personal tax is about 35% on a large jackpot. It used to be higher, but 2006 maximum income tax is 35%. So if you live in a state where tax is imposed (not in FL) then you could end up paying about 42% of your total winnings and that's AFTER you give up about 1/2 to take the lump sum. Then they expect you to pay a huge Gift Tax if you want to give it away! Several lot... [ More ]

Reply #6

fxsterling — Sun, 05 Feb 2006 05:55:36 GMT

montana 10% tax Tenn has no tax but I go to a town in S.C. it's called Fair Play IF I win 7% goes to SC no big deal I have got powerball tickets at pts what state do they use

Reply #5

TheGameGrl — Sun, 05 Feb 2006 04:49:00 GMT

I'll keep it simple. because you live in Maryland and they have the goofiest tax laws around. You'll pay no matter where you claim. Your state zaps you on the state level as well as the federal level.

So my suggestion is simple- move from that state and save yourself 7% on taxes ! (just kidding

Reply #4

JimmySand9 — Sun, 05 Feb 2006 01:49:15 GMT

I'm lucky because Pennsylvania doesn't impose state tax on lottery winnings. So the worst case scenario would be I would be taxed by a state once, the one where I bought the ticket. And that's only if they tax winnings. If I won in California, Florida, or Tennessee I wouldn't have to pay any taxes to either them or Pennsylvania.

Reply #3

RJOh — Sun, 05 Feb 2006 01:39:27 GMT

If you live in or buy your winning ticket in a city that tax lottery winnings then you will pay there also.

Reply #2

Chewie — Sun, 05 Feb 2006 01:30:37 GMT

You win in New Jersey, and win in New York - you will be double-tapped; atleast. As I've said before, where there is a law maker, there will be a tax collector. They react to an increase in income the way maggots react to garbage. They want everything they can get.

Reply #1

RJOh — Sat, 04 Feb 2006 21:22:19 GMT

You pay in the state where you won and in the state where you live depending on each state tax rates.

State Tax on Lottery Win

worldsux — Sat, 04 Feb 2006 21:11:07 GMT

You pay the state tax on a lottery win based on the state you reside in, not the state you purchase the ticket in, correct? So if you travel to another state to buy Powerball or Megamillions tickets, you only pay the taxes based on where you reside. It kinda is bad because I live in Maryland, which has one of the highest tax rates on lottery wins. But, then again, it's unlikely that I'll ever win. But you gotta hope