state taxes on winnings Q

Reply #21

Littleoldlady — Sat, 26 Apr 2008 16:36:24 GMT

In the first place before you even get the money, the feds will have theirs and so will the state. So don't move..just stay there, collect your losing tickets and try to get some of it back.

Reply #20

MeFirstYouLast — Thu, 24 Apr 2008 22:21:52 GMT

As I stated during my last post, the purchased date has absolute zero effect on the out come. All I need is a lease dated before the date on the winning draw slip or scratch-off card. Easily done with a pre-dated lease of a bedroom from a relative, friend, or stranger. I can name hundreds of people who would sign a pre-dated lease for a hundred thousand dollars. Walk down any street in down town Philadelphia and see how much it would cost to have some one killed. TV reporting puts a human life a... [ More ]

Reply #19

Coin Toss — Thu, 24 Apr 2008 14:23:30 GMT

Another interesting thread.

Despite the Once upon a time Jetrho hit a jackpot, moved to another state, and beat the other state out of a few million in taxes , let's see:

Would anyone who hit a jackpot try such a move?

Probably, someone out there.

Would they regret it afterwards, having exchanged the taxes for lawyers' fees, and then having to cough up the taxes, too?

Even more probably.

I just can't wait for the thread about an American hitting a jackpot and moving to Canada b... [ More ]

Reply #18

DC81 — Thu, 24 Apr 2008 12:33:41 GMT

Yeah, didn't factor in the potential for county and city income taxes, I wouldn't live there long either.

Reply #17

time*treat — Thu, 24 Apr 2008 09:53:17 GMT

It depends on where people live. My state has a flat income tax. Some states get up to 8%-9%. I once lived in a state where there were income taxes at state, county and city levels. Adding federal, that's 4 filings. I didn't live there long.

Reply #16

DC81 — Thu, 24 Apr 2008 09:07:32 GMT

Why so much concern over state income taxes anyway? The ones you really should be concerned about are the Federal first and foremost, then maybe the state.. If it's a big win move to a state with no income tax to help potentially reduce it the next year. That way you'll only have to pay that once unlike the Federal.

Reply #15

KY Floyd — Thu, 24 Apr 2008 07:13:35 GMT

You're fairly thoroughly delusional about how it works. Just as you don't need a driver's license if you don't drive, you don't need to use a house or apartment as your permanent residence. Owning a dwelling in the state you claim to have moved to will be useful, but other factors may be considered, too. Claiming to rent from a relative will have almost no meaning at all without some other evidence to back it up. You can certainly back date a fraudulent lease agreement, but you're going to have... [ More ]

Reply #14

KY Floyd — Thu, 24 Apr 2008 07:01:15 GMT

Your residence and your tax obligations have nothing to do with whether or not you've agreed to a press conference (you have absolutely no control over a press release), or when you signed the ticket. Tax liability only happens when you have constructive possession of the income. You aren't entitled to a dime until the drawing makes you a winner, so you have no tax obligation until the drawing. That means that moving any time before the drawing isn't tax evasion, and the state you used to live i... [ More ]

Reply #13

four4me — Thu, 24 Apr 2008 03:40:45 GMT

MeFirstYouLast wrote: Hummmmm ... something doesn't add up. I have bought scratch offs from over the counter, from numerous states, and they did not scan the ticket.

All the tickets that are for sale were scanned before they were placed in the dispenser or behind the counter or wherever they are kept.

Reply #12

KyMystikal — Thu, 24 Apr 2008 03:22:38 GMT

I remember before I started playing online, I used to go visit in Alabama then drive down to Atmore on the border to play Florida. Boy, those were the days, lol.

Reply #11

tntea — Thu, 24 Apr 2008 03:14:58 GMT

Each book of tickets are activated before sold. The dates of activation would indicate the time period to when the ticket was bought. Winners before or after the tickets bought would indicate the time the ticket was cashed in.

If you bought five tickets and I bought the five after you. If you won a million, and I won only a ticket. When I collected my ticket the ticket you bought was then registered as being bought before mine.

Reply #10

MeFirstYouLast — Thu, 24 Apr 2008 00:14:54 GMT

Hummmmm ... something doesn't add up. I have bought scratch offs from over the counter, from numerous states, and they did not scan the ticket. They just grab the quantity I bought, collected the money, and I walked away. No record of what I bought or when I bought it. This applied in new Jersey, Texas, Oklahoma, New York, and Pennsylvania. Therefore, for the purpose of scratch-offs, my position is valid. The state have no idea of who bought what or when they were bought; only where it was bough... [ More ]

Reply #9

Coin Toss — Wed, 23 Apr 2008 13:16:18 GMT

KYFloyd

In some states (those that don't allow one to remain anonymous) the back of the ticket contains a consent to a press release.

This consent is made when the person purchases the ticket.

They have to sign it to collect a winner, but the purchase date on front of the ticket is the date the pres release was agreed .

Look at the back of one of your tickets and see if there's anywhere to write the date along with your signature. There's no date on the signature block, it's on the f... [ More ]

Reply #8

KY Floyd — Wed, 23 Apr 2008 06:33:14 GMT

The taxes are going to be based on your home of residence the day of the ticket purchase.

In theory it will be based on your residence at the time the ticket becomes a winner. You have absolutely zero ability to collect the prize until the drawing turns your $1 piece of paper into a winning ticket, so it's not taxable income until the drawing is held. As a practical matter it may be based on which state's driver's license you have on the day of the drawing. You could move out of your old hou... [ More ]

Reply #7

time*treat — Wed, 23 Apr 2008 00:46:21 GMT

Additionally, in some states, you have to live there for a month or two before you can claim residency.

Reply #6

Coin Toss — Tue, 22 Apr 2008 23:33:43 GMT

Nice try.

The taxes are going to be based on your home of residence the day of the ticket purchase.

The tax people have people dedicated to spotting moves like the one you're suggesting.

I could be real dumb for one hundred million dollars!

Yeah, you could. Nothing like hitting a jackpot and doing 15 to 20 for tax evasion, or spending a portion of it on legal fees.

I'm seriously starting to wonder about the Philadelphi lawyers on this board.

Dang.

Reply #5

MeFirstYouLast — Tue, 22 Apr 2008 23:22:02 GMT

Why not just move to the state with the lesser tax, BEFORE, you claim the prize. Get a new apartment, drivers license, register your car, and become a resident of that state? If you currently live in NJ, bought a Powerball in PA today, win the jackpot tomorrow, and move to PA the same day (night). Do the paper work, then claim the prize. Seems to me, they would have to prove you were attempting to cheat the NJ tax man. After all, nothing prevents you from moving from state to state. You frequent... [ More ]

Reply #4

GamerMom — Tue, 22 Apr 2008 19:35:50 GMT

Thanks. I live in Alabama, which has a state tax, and buy tix in Florida, which has no state tax. I know i'll probably never hit the big JP but if I ever got 5 out of 6 I would like to know about my tax situation. thanks

Reply #3

Pinkpansies — Tue, 22 Apr 2008 19:33:59 GMT

You have to pay taxes in the state where the money was earned. Let's say you live in Florida (which has no state income tax) and bought a lottery ticket and won in a state that has an income tax, then you will have to pay income tax for that state. There've been people that try to duck out of paying the income tax and the courts have ruled in the states favor where the ticket was bought.

Reply #2

KY Floyd — Tue, 22 Apr 2008 04:45:38 GMT

There may be exceptions, but what usually happens is any tax paid to a state in which you don't reside is credited towards any tax you would owe in your own state.

As an example, if you live in a state with a 6% tax and win $1 million in a state with a 5% tax you would pay $50,000 to the state in which you won. Your taxable income in your state of residence would be increased by $1 million, which would normally result in owing $60,000. Since you paid $50,000 to the other state you would only... [ More ]

Reply #1

DC81 — Tue, 22 Apr 2008 02:55:52 GMT

Yes and if you bought a ticket in a different state from your own and they both had taxes, you'd have to pay both.

state taxes on winnings Q

GamerMom — Tue, 22 Apr 2008 02:30:03 GMT

If you live in a state with a state tax and win the lottery in a state that does not have a state tax do you pay taxes to the state in which you reside on your lottery winnings