U.S. Citizenship and Residency

Reply #5

Super-man — Thu, 08 Jan 2009 06:09:47 GMT

Oh I see...thanks to all of you guys who replied. I would say that I am now enlightened. Yes Todd, the USAMega website is indeed a very informative place for lottery players. Thanks for the referral. I sure hope when the BIG day arrives, my green card has already turned into US citizenship.

Thanks again guys

Reply #4

Todd — Thu, 08 Jan 2009 04:38:18 GMT

I think you'd still end up paying the flat rate, plus state taxes (if any in the state you purchase the ticket in).

You would naturally check with a good accountant before claiming, of course!

Also, don't get wrapped up in the talk about owing 35%, 36%, or even 38%. Not everyone pays that much. The ones you hear about that hire accounting teams are much smarter than that, and don't pay nearly that much.

You can find a good description of a bunch of tax issues by going to www.usamega.com... [ More ]

Reply #3

ambelamba — Thu, 08 Jan 2009 03:26:32 GMT

In California, BOTH citizens and permanent residents pay 25% tax, as long as you provide your SSN. If you don't provide the SSN, you pay 30%. People with no Green Card pay 30% no matter what.

I am a permanent resident and if I win, I would provide my SSN. 5% is a huge chunk if you win a multi-million-dollar jackpot. And Lottery Commission will certainly not disclose my SSN.

Even better, hundreds of Koreans living in LA county share the same first and last name with me.

Reply #2

KY Floyd — Wed, 07 Jan 2009 09:51:31 GMT

I highly doubt there's special rule for non-citizens who are expecting to become citizens. Suppose your citizenship isn't finalized for some reason, or you just decide to leave with the money? Either way, it isn't really important, assuming you plan to stay here and pay your taxes.

Citizen or not, as a US resident your actual US tax obligation if you win a jackpot is likely to be pretty close to 35%. If you have to pay taxes to the country of which you're currently a citizen you may receive a... [ More ]

Reply #1

four4me — Wed, 07 Jan 2009 06:09:22 GMT

you have 180 days to claim powerball tickets. So one way or another the feds will collect.

U.S. Citizenship and Residency

Super-man — Wed, 07 Jan 2009 05:49:47 GMT

Greetings and happy new year to all Lottery Post members and administrators! I've been lurking around the site ever since I arrived here in Pennsylvania last year and started playing Powerball; and I must say that I've learned a lot from everyone's inputs and discussions.

Having said that, I've read from several lottery FAQs that if you're not a US citizen and you win the jackpot (among other major prizes), the federal withholding tax is a flat 30%. As we speak, my papers to become a citizen... [ More ]