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PA resident winning lottery in NJ - Taxes

Topic closed. 21 replies. Last post 5 months ago by winningin2016.

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helpmewin's avatar - dandy
u$a
United States
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February 22, 2011
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Posted: July 13, 2016, 11:59 pm - IP Logged

I Agree!

Worrying about imaginary jackpots is one thing, but some of the same people are very critical of when and how real winners collect and spend their winnings.

Green laugh

Let it Snow Snowman

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    Zeta Reticuli Star System
    United States
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    January 17, 2006
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    Posted: July 14, 2016, 12:32 am - IP Logged

    Yea, I was told that u will have to pay taxes in both states. Do what I do, got a family member or a friend u can trust in NJ? Let them cash it in for u to avoid PA tax. Or just play PA scratch-offs and get state tax-free cash.

    Then the family member or friend in NJ has to pay the taxes.

    Bang Head

    Those who run the lotteries love it when players look for consistency in something that's designed not to have any.

    Lep

    There is one and only one 'proven' system, and that is to book the action. No matter the game, let the players pick their own losers.

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      Pa
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      Member #162117
      December 22, 2014
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      Posted: July 14, 2016, 6:57 am - IP Logged

      Good old Tom Wolf changed that yesterday.  Extended 3.07 percent state income tax to Pennsylvania Lottery winnings

        Todd's avatar - Cylon 2.gif
        Chief Bottle Washer
        New Jersey
        United States
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        May 31, 2000
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        Posted: July 14, 2016, 10:36 am - IP Logged

        No! Reciprocal States! PA doesn't Tax you if you Win in PA, but if you Win Out-Of-State they Tax you on the Winning and the Reciprocal State (NJ) Doesn't Tax You!

        I don't think reciprocation applies to gambling wins, just regular income.  Read it and weep: http://www.state.nj.us/treasury/taxation/njit25.shtml

        Thus, a PA resident playing in NJ would end up paying the NJ tax rate on lottery wins.

         

        Check the State Lottery Report Card
        What grade did your lottery earn?

         

        Sign the Petition for True Lottery Drawings
        Help eliminate computerized drawings!

          Raven62's avatar - binary
          New Jersey
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          June 28, 2005
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          Posted: July 14, 2016, 10:58 am - IP Logged

          I don't think reciprocation applies to gambling wins, just regular income.  Read it and weep: http://www.state.nj.us/treasury/taxation/njit25.shtml

          Thus, a PA resident playing in NJ would end up paying the NJ tax rate on lottery wins.

          Does that mean one would Pay Tax on the same Winnings in Both States?

          A mind once stretched by a new idea never returns to its original dimensions!

            Deo-nonfortuna's avatar - hqdefault
            NJ
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            April 27, 2015
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            Posted: July 14, 2016, 11:27 am - IP Logged

            I Agree!

            Worrying about imaginary jackpots is one thing, but some of the same people are very critical of when and how real winners collect and spend their winnings.

            That's so hilarious, and we know these people often indulge in such conversations and add unnecessary stress in their lives. LOL

            All things which are similar and therefore connected, are drawn to each other's power.

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              New Member

              United States
              Member #176025
              July 16, 2016
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              Posted: July 16, 2016, 11:27 pm - IP Logged

              The way it works in general with taxes, is hopefully the states have a reciprocity agreement (meaning you will pay no more than the state that has the higher tax rate). So in this case you would be hit with the 8% state tax rate for NJ.

               

              I am looking for a win this year too! I have come close in the last 1.5 years 5 of 6 twice on a state lottery and then 4 of 6 with the multiplier x5 on the mega back in March of this year. I am going to keep trying.