Which way would work best?

Reply #11

ameriken — Fri, 07 Jan 2011 18:13:01 GMT

True, that's one problem I pray for: a very large tax bill from winning the lottery.

Reply #10

srwright66 — Fri, 07 Jan 2011 17:34:49 GMT

LOL. I'm sure you are right. I will be welcomed with open arms by ID. Hahaha. It would be a great problem to have, lol.

Good luck everyone.

Reply #9

ameriken — Fri, 07 Jan 2011 05:12:03 GMT

No need to worry. If you actually won and didn't pay the right taxes to the right place, I'm sure the tax auditors in NV, ID, and the IRS will help you find your way out of limbo and determine where you are resident and how much taxes, penalties, and interest you owe to whom.

Reply #8

ca-dreamin* — Fri, 07 Jan 2011 04:53:38 GMT

If you're earning money in Idaho they may consider you a part-time resident. You may have to file State income taxes with them.

Reply #7

srwright66 — Thu, 06 Jan 2011 19:37:56 GMT

Oops, sorry about that. I guess I didn't clarify. Idaho has a minimum 6 months to become a resident. I have only been here 3 months. I am kind of in limbo. LOL

Reply #6

KY Floyd — Thu, 06 Jan 2011 17:43:49 GMT

Whatever state you're a resident of gets to collect income tax on all of your taxable income, assuming that state has an income tax. Any state is entitled to collect income tax on any income earned in that state, again, assuming that state has an income tax.

If you win with a ticket from a state you don't live in and that state does have an income tax you'll definitely be paying income tax to that state. Most states (probably all, but I'm not positive), will give you a full credit for the tax... [ More ]

Reply #5

ameriken — Thu, 06 Jan 2011 17:27:48 GMT

Speaking of residency, most states have some kind of residency law that if you are living and working in their state for a certain amount of time (30 days?) and are going to be staying there for a while, then your drivers license should reflect that. It really sounds like you are an Idaho resident, so keep yourself clean and legal and on the up and up and change your license to Idaho, get Idaho auto insurance, so on and so forth.

If you really do win a sizable amount in a lottery (by sizeable... [ More ]

Reply #4

Boney526 — Thu, 06 Jan 2011 16:25:31 GMT

I don't *know* that this would be legal, but you could potentially (and I'd look up the laws on this) buy your tickets in Washington, and if you win you could (maybe?) move there before claiming the win to avoid the taxes.

Although if you did something like that I know New Jersey would be after you. In fact, in NJ your supposed to be Sales and use tax which means if you buy something in the State or something to be used in the State, then your supposed to give the state government 7%. Th... [ More ]

Reply #3

Raven62 — Thu, 06 Jan 2011 16:01:27 GMT

If you Lie about your Place of Residence: In the eyes of Idaho you'll be a Tax Cheat: Then you'll have 20 years in Prison to Think about what you did

Reply #2

savagegoose — Thu, 06 Jan 2011 14:41:04 GMT

1st off , i dont think deciding what state to live in should be based on how much tax you will apy when you win the lotto.

I admmire your optimism, but chances are you aint gonna win.

as ameriken points out its base don where you reside, and apart from moving you cant really change that.

Reply #1

ameriken — Thu, 06 Jan 2011 02:32:12 GMT

I don't think it's a matter of where you buy the ticket, but rather where you are a resident.

As far as I know, whether you win the lottery or not, you have to have a state of residency, in other words where do you live and work, buy insurance, where you are paying utility bills, the address you give your employer, get your mail, do business, etc. When you file your income taxes every April, you have to put a resident address.

Having said that, I'm sure it doesn't matter where you buy your... [ More ]

Which way would work best?

srwright66 — Thu, 06 Jan 2011 01:56:56 GMT

Long time lurker, first time poster.

It was a bummer for me this morning. I bought Mega Millions tickets in Idaho and Washington. None of mine were the big winners. I recently moved to Idaho near the Washington state line. I moved here from Las Vegas because of my job. I have kept my Nevada drivers license, I will eventually move back. Immediately upon jackpot win, LOL.

I've tried to figure which way would be best for when I win :).

Should I be buying my tickets in Washington (no state... [ More ]