Winning and Moving to Income Tax Free State

Reply #21

Guru101 — Wed, 31 Jan 2007 22:45:31 GMT

No, because it doesn't matter. The state you bought the ticket is what determines whether or not you pay taxes and how much.

Reply #20

rdc137 — Wed, 31 Jan 2007 22:27:32 GMT

Yes. But states still do that anyway. If you work in New York and live in New Jersey, do you pay taxes to New York? Yes. Can you vote in New York? No.

Reply #19

guesser — Wed, 31 Jan 2007 22:16:28 GMT

??

If they did that, would that not be considered 'taxation without representation

Reply #18

rdc137 — Wed, 17 Jan 2007 16:58:20 GMT

If you choose annuity payments and later move to NC from FL, NC would tax you on every payment you receive while a resident of the state, but would not tax you on any payments you receive before or after being a resident there.

Reply #17

justxploring — Wed, 17 Jan 2007 07:07:25 GMT

rdc137 is right. I don't know how it worked exactly, but when I lived worked in Massachusetts, an awful lot of people commuted from New Hampshire. New Hampshire had no state income tax or sales tax. There was some kind of credit issued for people who didn't work full time in Massachusetts. My boss was an outside salesperson so he only paid a portion of the Mass tax since he lived in NH. He finally convinced the company to move the office to NH. (which is why I finally ended up there!) I... [ More ]

Reply #16

Just6ntlc — Wed, 17 Jan 2007 06:04:27 GMT

I don't like to pay state tax based on the scenarios they want to.

Reply #15

konane — Wed, 20 Dec 2006 18:12:39 GMT

Reply #14

Just6ntlc — Tue, 19 Dec 2006 00:40:52 GMT

My vote is yes because I don't want to pay income tax.

Reply #13

scorpio — Mon, 18 Dec 2006 18:03:18 GMT

don't have to worry about that,i don't live in a red state,so will not win anyway

Reply #12

rdc137 — Mon, 18 Dec 2006 07:13:31 GMT

You would be taxed by both the state in which you purchase the ticket and the state in which you live. The state in which you live would grant a credit in some form or another, not necessarily on the entire tax paid. States like New York and Delaware use apportioning to determine taxable income. This means non-residents calculate their tax as if they are residents, then multiply it by a percent determined from state income vs. total income. Residents of such states would use a similar method to

Reply #11

guesser — Mon, 18 Dec 2006 05:37:36 GMT

I was told the same thing by a Kansas official.

Reply #10

Tenaj — Mon, 18 Dec 2006 02:45:15 GMT

Thanks for the update wpb. It's helps that you can get a credit for SC.

Reply #9

wpb — Mon, 18 Dec 2006 02:38:15 GMT

If you live in NC and buy a winning Scratch off in SC, SC will take taxes out of your winning, but NC will give you a credit for the Taxes paid in SC. NC will tax your winning by adding it to your income which will increase your taxes. I am not sure when this was changed but it use to be if you did not live in the state you won in, you would file a tax form and receive all of the taxes you paid in that state. Now your state gives you a credit and you do not have to file a tax form in the s... [ More ]

Reply #8

Todd — Mon, 18 Dec 2006 02:33:30 GMT

I think you meant to say ...buy your ticket in SC...

I do not believe you are correct. Both states have a 7% state tax on lottery prizes, so according to my information you would pay 7% to North Carolina only, or if you paid it to S.C., you would not owe N.C. taxes on the prize.

Most border states (maybe all border states) have tax agreements on how to handle these things.

The situation is the same as it is for regular income, if you lived in N.C. and worked in S.C.: S.C. may withho... [ More ]

Reply #7

Tenaj — Sun, 17 Dec 2006 23:55:50 GMT

If you live in NC and buy your ticket in NC you pay taxes in both states. That's why I can't understand why people drive to SC for SC's scratch offs (NC scratch offs is bad) and get a Powerball ticket while they are down there. Why pay taxes in both states if you don't have too. I can see it if we didn't have Powerball.

Maybe it's like not caring about cash or annunity. Just let me win. Maybe they think their luck is in SC.

Reply #6

Todd — Sun, 17 Dec 2006 23:43:05 GMT

That is correct.

Here's a glance at some various scenarios to show how you would pay your state tax if you live in one state and buy your ticket in a different state. These guideline will generally be correct, although it is feasible that there may be exceptions here and there.

Taxes in Your

State of Residence

Taxes Where

Ticket is Bought

Who do you pay state taxes to?

5%

No state tax

5% paid to state of residence

5%

5%

5% paid to state of... [ More ]

Reply #5

CA LotteryGuy — Sun, 17 Dec 2006 21:04:36 GMT

From the State of California web Site: A California resident is an individual who is in California for other than temporary reasons. A resident is an individual who is working, living, retiring or staying in California for a long period. .

It looks like you could win as a visitor and then move to California and claim your prize as a resident. There is no time limit to become a resident, just you be here for other then temporary reasons. Once you move here, you are a... [ More ]

Reply #4

mangeydog — Sun, 17 Dec 2006 21:04:02 GMT

I could be wrong about this(I'm not a tax lawyer), but I think it actually has to do with the state you bought the ticket in. For example, I live in Iowa but if I drive to Illinois and win the mega millions, I would be taxed on Illinois rates. That I know is a fact, because it was a question answered by a lottery official.

Reply #3

Raven62 — Sun, 17 Dec 2006 20:13:14 GMT

You need to move to one of the 9 Tax Free States (establish Residency (takes 6 months)) before playing the Lottery, NOT after you've WON

Reply #2

Coin Toss — Sun, 17 Dec 2006 19:42:33 GMT

Yeah, I think that's right. It's all going to be based on your residence when you won, not when you decided to claim the prize.

But I've lived her three months now .

Interesting, the jackpot you won was from a drawing four months ago.

PS

The difference between tax avoidance and tax evasion?

About 10 to 15 years.

Reply #1

justxploring — Sun, 17 Dec 2006 08:42:12 GMT

It would not make a difference.

Winning and Moving to Income Tax Free State

rdc137 — Sun, 17 Dec 2006 06:08:49 GMT

If you suddenly won Powerball or Mega Millions, and your ticket came from a state that doesn't tax their own lotteries (CA, DC non-residents, DE, NJ, PA, WV non-residents), or a state with no income tax (FL, NH, SD, TN, TX, WA), would you first move to one of the 9 tax free states before claiming the jackpot