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whiteballz

Nutley, New Jersey
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Mar 17, 2013, 3:55 am

If someone won a MM or PB jackpot and they lived in a state like New Jersey that taxed lottery winnings 10.8%, what would happen if the winner choose the annuity payments and then moved to another state that doesn't have income tax, a state like Nevada?

I'm guessing New Jersey would want to tax the first annuity payment for 2013 but what about the other annuity payments in 2014, 2015, 2016 and so on? Can the state you resided in when you won the jackpot continue to tax you after you left the state?

.
billionaire2bee

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Mar 17, 2013, 8:13 am

Quote: Originally posted by whiteballz on Mar 17, 2013
If someone won a MM or PB jackpot and they lived in a state like New Jersey that taxed lottery winnings 10.8%, what would happen if the winner choose the annuity payments and then moved to another state that doesn't have income tax, a state like Nevada?

I'm guessing New Jersey would want to tax the first annuity payment for 2013 but what about the other annuity payments in 2014, 2015, 2016 and so on? Can the state you resided in when you won the jackpot continue to tax you after you left the state?

Hmmm that's a good question...mainly cause I was wondering the same LOL....I love to be your guinea pig and give it a try...
Stack47

Kentucky
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Mar 18, 2013, 3:36 pm

Quote: Originally posted by whiteballz on Mar 17, 2013
If someone won a MM or PB jackpot and they lived in a state like New Jersey that taxed lottery winnings 10.8%, what would happen if the winner choose the annuity payments and then moved to another state that doesn't have income tax, a state like Nevada?

I'm guessing New Jersey would want to tax the first annuity payment for 2013 but what about the other annuity payments in 2014, 2015, 2016 and so on? Can the state you resided in when you won the jackpot continue to tax you after you left the state?

Assuming that New Jersey will say the income comes from that state, they probably will use the same state tax laws that require residences of New Jersey that work in New York to pay the difference between the state taxes (1.98%) to New Jersey.

The way things are going it looks like that in the future many municipalities, states, and the Feds will raise taxes and something to seriously think about when opting for the annuity.
maringoman

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Mar 18, 2013, 3:45 pm

Its simple, you usually pay income taxes on the state where you earn the income.

That money's gone fo ever
haymaker

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Mar 18, 2013, 8:08 pm

Quote: Originally posted by whiteballz on Mar 17, 2013
If someone won a MM or PB jackpot and they lived in a state like New Jersey that taxed lottery winnings 10.8%, what would happen if the winner choose the annuity payments and then moved to another state that doesn't have income tax, a state like Nevada?

I'm guessing New Jersey would want to tax the first annuity payment for 2013 but what about the other annuity payments in 2014, 2015, 2016 and so on? Can the state you resided in when you won the jackpot continue to tax you after you left the state?

If annuities were paying better rates I would have to consider that and move to Nevada, Jersey is incredibly greedy w/ a 10.8%

but as things are I'll stick w/ cash.

Extraordinary Popular Delusions & the Madness of Crowds -- Charles Mackay LL.D.
haymaker

Egg Harbor twp.south Jersey shore
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Mar 18, 2013, 8:16 pm

Quote: Originally posted by maringoman on Mar 18, 2013
Its simple, you usually pay income taxes on the state where you earn the income.

I would hope that you are correct, but w/ Jersey's greed I could never be sure,

used to be we did'nt have a state tax on lottery wins.

But then we had a huge JP won here, and they went and passed a tax bill on lottery @ 10.8%

They really beat up that winner, cause they won in june, and they made the tax retroactive to jan. 1st

Extraordinary Popular Delusions & the Madness of Crowds -- Charles Mackay LL.D.
rdgrnr

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The Hall Of The Mountain Kings Tennessee
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Mar 18, 2013, 9:45 pm

Quote: Originally posted by haymaker on Mar 18, 2013
I would hope that you are correct, but w/ Jersey's greed I could never be sure,

used to be we did'nt have a state tax on lottery wins.

But then we had a huge JP won here, and they went and passed a tax bill on lottery @ 10.8%

They really beat up that winner, cause they won in june, and they made the tax retroactive to jan. 1st

"They really beat up that winner, cause they won in june, and they made the tax retroactive to jan. 1st"

What a dirty rotten lowdown thing to do.

They wanted to rob that guy so bad they created a law allowing them to do it.

Unfrigginbelievable.
whiteballz

Nutley, New Jersey
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Mar 18, 2013, 10:46 pm

Quote: Originally posted by haymaker on Mar 18, 2013
I would hope that you are correct, but w/ Jersey's greed I could never be sure,

used to be we did'nt have a state tax on lottery wins.

But then we had a huge JP won here, and they went and passed a tax bill on lottery @ 10.8%

They really beat up that winner, cause they won in june, and they made the tax retroactive to jan. 1st

yes, you are right. I just found the news story here: https://www.lotterypost.com/news/196448

If I learned anything it is: never underestimate the goverment's ability to tax you at anytime for any reason!

.
rdgrnr

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The Hall Of The Mountain Kings Tennessee
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Mar 18, 2013, 10:57 pm

Quote: Originally posted by whiteballz on Mar 18, 2013
yes, you are right. I just found the news story here: https://www.lotterypost.com/news/196448

If I learned anything it is: never underestimate the goverment's ability to tax you at anytime for any reason!

I hope they voted them guys out, whoever put that bill through.
sully16

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Ringleader

Michigan
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October 28, 2009
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Mar 19, 2013, 12:02 am

Quote: Originally posted by rdgrnr on Mar 18, 2013
"They really beat up that winner, cause they won in june, and they made the tax retroactive to jan. 1st"

What a dirty rotten lowdown thing to do.

They wanted to rob that guy so bad they created a law allowing them to do it.

Unfrigginbelievable.

Wow, just when you think you've heard it all, retro taxes on lottery, that is a dirty rotten shame.
dallascowboyfan

Oklahoma
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November 12, 2009
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Mar 22, 2013, 5:46 am

Quote: Originally posted by whiteballz on Mar 17, 2013
If someone won a MM or PB jackpot and they lived in a state like New Jersey that taxed lottery winnings 10.8%, what would happen if the winner choose the annuity payments and then moved to another state that doesn't have income tax, a state like Nevada?

I'm guessing New Jersey would want to tax the first annuity payment for 2013 but what about the other annuity payments in 2014, 2015, 2016 and so on? Can the state you resided in when you won the jackpot continue to tax you after you left the state?

10.8% DANG

I Love Pink & Green 1908
dallascowboyfan

Oklahoma
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November 12, 2009
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Mar 22, 2013, 5:48 am

Quote: Originally posted by haymaker on Mar 18, 2013
I would hope that you are correct, but w/ Jersey's greed I could never be sure,

used to be we did'nt have a state tax on lottery wins.

But then we had a huge JP won here, and they went and passed a tax bill on lottery @ 10.8%

They really beat up that winner, cause they won in june, and they made the tax retroactive to jan. 1st

That is messed up.

I Love Pink & Green 1908

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