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Winning and Moving to Income Tax Free State

Topic closed. 21 replies. Last post 10 years ago by Guru101.

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Would you move to an income tax free state before claiming a jackpot?

Yes [ 16 ]  [33.33%]
No [ 17 ]  [35.42%]
Already live in one [ 8 ]  [16.67%]
Unsure [ 7 ]  [14.58%]
Total Valid Votes [ 48 ]  
Discarded Votes [ 4 ]  
konane's avatar - wallace
Atlanta, GA
United States
Member #1265
March 13, 2003
3333 Posts
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Posted: December 20, 2006, 1:12 pm - IP Logged

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. 

I Agree!

Good luck to everyone!


    United States
    Member #16612
    June 2, 2005
    3493 Posts
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    Posted: January 17, 2007, 1:04 am - IP Logged

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

      justxploring's avatar - villiarna
      Wandering Aimlessly
      United States
      Member #25360
      November 5, 2005
      4461 Posts
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      Posted: January 17, 2007, 2:07 am - IP Logged

      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 am guessing the same rules apply to people in New Jersey who work in New York or people who commute from Oregon to California, etc. 

      My question about the lottery has always been the opposite of this thread.  If I won a jackpot in FL I'd only have to pay federal tax, but if I chose the annual payments and moved to a state like NC, would I pay all or a portion of their state tax every year I collected?  I know one answer is to stay in FL, but my goal is to get out of here when I get some money or die. (whichever comes first.)  Another solution would be to take the lump sum payment.

        Avatar
        Delaware
        United States
        Member #30273
        January 14, 2006
        494 Posts
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        Posted: January 17, 2007, 11:58 am - IP Logged

        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 am guessing the same rules apply to people in New Jersey who work in New York or people who commute from Oregon to California, etc. 

        My question about the lottery has always been the opposite of this thread.  If I won a jackpot in FL I'd only have to pay federal tax, but if I chose the annual payments and moved to a state like NC, would I pay all or a portion of their state tax every year I collected?  I know one answer is to stay in FL, but my goal is to get out of here when I get some money or die. (whichever comes first.)  Another solution would be to take the lump sum payment.

        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.

          guesser's avatar - Lottery-017.jpg

          United States
          Member #41383
          June 16, 2006
          1969 Posts
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          Posted: January 31, 2007, 5:16 pm - IP Logged

          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.

          ??

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

            Avatar
            Delaware
            United States
            Member #30273
            January 14, 2006
            494 Posts
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            Posted: January 31, 2007, 5:27 pm - IP Logged

            ??

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

            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.

              Guru101's avatar - rw6jhh
              Indiana
              United States
              Member #48725
              January 7, 2007
              1956 Posts
              Offline
              Posted: January 31, 2007, 5:45 pm - IP Logged

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