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Choosing the Annuity Payments and State Taxes.

Topic closed. 11 replies. Last post 4 years ago by dallascowboyfan.

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whiteballz's avatar - Lottery-015.jpg
Nutley, New Jersey
United States
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August 1, 2012
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Posted: March 17, 2013, 3:55 am - IP Logged

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?

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    United States
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    July 25, 2012
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    Posted: March 17, 2013, 8:13 am - IP Logged

    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...

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      Kentucky
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      February 14, 2006
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      Posted: March 18, 2013, 3:36 pm - IP Logged

      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's avatar - images q=tbn:ANd9GcTbRxpKQmOfcCoUqF2FyqIOAwDo7rg9G-lfJLAALPGWJWwiz19eRw
        Massachusetts
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        Posted: March 18, 2013, 3:45 pm - IP Logged

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

        That money's gone fo ever

          haymaker's avatar - Lottery-012.jpg
          Egg Harbor twp.south Jersey shore
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          Posted: March 18, 2013, 8:08 pm - IP Logged

          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's avatar - Lottery-012.jpg
            Egg Harbor twp.south Jersey shore
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            Posted: March 18, 2013, 8:16 pm - IP Logged

            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's avatar - walt
              Way back up in them dadgum hills, son!
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              Posted: March 18, 2013, 9:45 pm - IP Logged

              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's avatar - Lottery-015.jpg
                Nutley, New Jersey
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                Posted: March 18, 2013, 10:46 pm - IP Logged

                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: http://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!  BS

                .

                  rdgrnr's avatar - walt
                  Way back up in them dadgum hills, son!
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                  Posted: March 18, 2013, 10:57 pm - IP Logged

                  yes, you are right. I just found the news story here: http://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!  BS

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

                    sully16's avatar - sharan
                    Ringleader
                    Michigan
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                    October 28, 2009
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                    Posted: March 19, 2013, 12:02 am - IP Logged

                    "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.

                    Did you exchange a walk on part in the war ?

                    For a lead role in a cage?

                     

                                                                From Pink Floyd's " Wish you were here"

                      dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
                      Oklahoma
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                      Posted: March 22, 2013, 5:46 am - IP Logged

                      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% DANGMad

                      I Love Pink & Green 1908

                        dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
                        Oklahoma
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                        November 12, 2009
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                        Posted: March 22, 2013, 5:48 am - IP Logged

                        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