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Taxes on out of state lottery win?

Topic closed. 10 replies. Last post 9 years ago by Just6ntlc.

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Bagent's avatar - avatar 10424.gif
Vancouver, WA
United States
Member #53665
July 15, 2007
151 Posts
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Posted: September 1, 2007, 12:22 am - IP Logged

I am a new member here and I think I saw the answer to my question while I was lurking in the forums, but can't for the life of me find the thread now.  So, forgive me for asking the question again.

 

My question is:  Mega Millions is available in Washington State and I live in Oregon (live just across the river).  Since Washington doesn't tax lottery wins and according to USA Mega site, Oregon taxes at 8%, how does the cross state taxes apply? 

 I know that I would have to claim my winning (keeping a positive attitude) in Washington where no state tax would be removed.  Do I have to immediately have to notify Oregon of the winnings or can it wait until the April tax time.

Any advise would be appreciated

    NightTrain1234's avatar - 8ball
    a Powerball AND MegaMillions state!
    United States
    Member #24190
    October 20, 2005
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    Posted: September 1, 2007, 12:12 pm - IP Logged

    Since you won it in Washington, I would think you would only owe any taxes in that state.

    Someone correct me if I'm wrong.

      Bagent's avatar - avatar 10424.gif
      Vancouver, WA
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      Posted: September 5, 2007, 5:39 pm - IP Logged

      Since you won it in Washington, I would think you would only owe any taxes in that state.

      Someone correct me if I'm wrong.

      Thanks for the reply NightTrain.  Can anyone else verify this info?

       

      Thanks in advance.

        Avatar
        Kentucky
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        Member #32652
        February 14, 2006
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        Posted: September 5, 2007, 7:09 pm - IP Logged

        Thanks for the reply NightTrain.  Can anyone else verify this info?

         

        Thanks in advance.

        Does Oregon have a state income tax?

        If they do, you're probably required to use the same income as on the the Federal form.

          LuckyLilly's avatar - savy chick.png

          United States
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          February 26, 2007
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          Posted: September 5, 2007, 7:41 pm - IP Logged

          If you live in CT you could pay in both states.  Confused

          http://www.cga.ct.gov/2000/rpt/olr/htm/2000-r-0955.htm

            LuckyLilly's avatar - savy chick.png

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            Posted: September 5, 2007, 7:45 pm - IP Logged

            Iowans can claim a tax credit if they pay to another state.

            http://www.state.ia.us/tax/educate/79102.html

              LuckyLilly's avatar - savy chick.png

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              Posted: September 5, 2007, 7:49 pm - IP Logged

              PA and NJ.  Sorry, can't find anything for OR.  I'd email your state tax commission and ask.

              http://www.philly.com/philly/hp/news_update/20070831_Pa__winner_would_keep_less_of__330_million.html

                TheGameGrl's avatar - character catafly.jpg
                A long and winding road
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                Posted: September 5, 2007, 11:35 pm - IP Logged

                This is strictly for out of state lottery when won thru the MD lottery.

                Out of state players pay the standard 25% (federal) plus 6% to MD. Then ya get to go home to your own state and pay the piper there. My state is PA , so for the Mega Millions it would go as follows:

                Jackpot won- 10 million(cash value) Less technically 35% federal, Less 6% to good ole Maryland, Less 3.07% to PA State Rev, Leaving a whopping ONE DOLLAR ( okay its a wee bit more then that, I just like the ONE DOLLAR commercial) 

                 Leaving 5.59 million to do with as one pleases.

                ~~Is it true, Is it kind,Is it necessary. ~~~

                christmas holly jolly numbers: 255,303,6911, 474,477 silver:47,gold:79.

                  Avatar
                  NY
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                  October 16, 2005
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                  Posted: September 6, 2007, 12:50 pm - IP Logged

                  I don't know the specifics for Oregon, but it's always a safe bet that a state with an income tax will collect  tax on your taxable income, regardless of where it came from. What counts as taxable income will vary from place to place, but unless Oregon exempts lottery winings or all gambling winnings, it will be taxable income. Some states make winnings in their own lotteries exempt, but there's no reason they would make winnings from another state exempt.

                  As far as notifying Oregon of oyur win, you'd probably never have to do that. You would have to report the income and presumably list it as gambling income. When you would have to do that depends on their rules and when you win. Generally, you should expect that  for taxable income where taxes haven't been withheld you are obligated to make quarterly payments of estimated taxes .

                    Bagent's avatar - avatar 10424.gif
                    Vancouver, WA
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                    Posted: September 7, 2007, 3:15 pm - IP Logged

                    I don't know the specifics for Oregon, but it's always a safe bet that a state with an income tax will collect  tax on your taxable income, regardless of where it came from. What counts as taxable income will vary from place to place, but unless Oregon exempts lottery winings or all gambling winnings, it will be taxable income. Some states make winnings in their own lotteries exempt, but there's no reason they would make winnings from another state exempt.

                    As far as notifying Oregon of oyur win, you'd probably never have to do that. You would have to report the income and presumably list it as gambling income. When you would have to do that depends on their rules and when you win. Generally, you should expect that  for taxable income where taxes haven't been withheld you are obligated to make quarterly payments of estimated taxes .

                    That is the crazy thing about Oregon...there is no sales tax at all, but they want 8% for lottery winnings.  Definately drives me crazy at times cuz we pay taxes on our wages from work, then have to pay taxes of winnings that are generated with post tax $.  Guess that is why I am a grunt and not a general.  HAHA


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                      Posted: September 12, 2007, 2:49 pm - IP Logged

                      Good thing CA doesn't have a state lottery tax if I win a jackpot.