PA resident winning lottery in NJ - Taxes

Reply #21

winningin2016 — Sun, 17 Jul 2016 03:27:18 GMT

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.

Reply #20

Deo-nonfortuna — Thu, 14 Jul 2016 15:27:47 GMT

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

Reply #19

Raven62 — Thu, 14 Jul 2016 14:58:43 GMT

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

Reply #18

Todd — Thu, 14 Jul 2016 14:36:51 GMT

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.

Reply #17

Jeopardy1941 — Thu, 14 Jul 2016 10:57:31 GMT

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

Reply #16

Coin Toss — Thu, 14 Jul 2016 04:32:28 GMT

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

Reply #15

helpmewin — Thu, 14 Jul 2016 03:59:49 GMT

Reply #14

Stack47 — Thu, 14 Jul 2016 02:50:53 GMT

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.

Reply #13

KY Floyd — Thu, 14 Jul 2016 01:46:19 GMT

Pennsylvania doesn't tax winnings from its own lottery, but other gambling income, including income from other lotteries is taxable. Since PA's rate is lower than any other state the taxes paid to the state where the winning ticket was bought will normally offset the taxes that would otherwise be owed to PA. If a PA resident won a prize in a state that has no state income tax or that doesn't tax winnings from their lottery then there would be no payments to a different state and the winner would... [ More ]

Reply #12

destinycreation — Wed, 13 Jul 2016 23:48:25 GMT

Pennsylvania No State taxes on Lottery Prizes

New Jersey 8% State Withholding Tax

In this scenario, you would have to pay Federal Income Tax, and 8% New Jersey State Income Tax, and no Pennsylvania State Tax, b/c your state of residence does Not tax Lottery Prizes.

Reply #11

Deo-nonfortuna — Wed, 13 Jul 2016 22:17:37 GMT

PA doesn't if u buy PA tickets, but I heard u still have to pay tax if u win from other states. I am not sure, but I get my friends to cash them in for me just to be safe.

Reply #10

HoLeeKau — Wed, 13 Jul 2016 22:12:52 GMT

It doesn't look like PA taxes lottery. But I'm pretty sure you'd have to pay the 8% NJ tax.

Reply #9

Deo-nonfortuna — Wed, 13 Jul 2016 21:51:53 GMT

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.

Reply #8

grwurston — Wed, 13 Jul 2016 21:43:55 GMT

Are lottery prizes taxable?

Lottery winnings of $600.01 and over are subject to Federal Withholding tax. For winnings of $600.01, up to and including $5,000, you will be issued a W-2G form to report your winnings on your federal income tax form. For winnings of $5,000.01 and over, your state's Department of Revenue removes the 25 percent federal withholding before you receive your winnings check (or, if it is an annuity, from each winnings check). You then receive a W-2G form with each check... [ More ]

Reply #7

Deo-nonfortuna — Wed, 13 Jul 2016 21:43:35 GMT

LP is full of people who worry about what to do with their imaginary MM PB jackpot win, some even go as far as worrying about how to stay anonymous. LOL. No kidding, win first and then worry about what to do next.

Reply #6

Raven62 — Wed, 13 Jul 2016 21:41:55 GMT

As They Say: Plan Ahead

Reply #5

Raven62 — Wed, 13 Jul 2016 21:38:50 GMT

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

Reply #4

LiveInGreenBay — Wed, 13 Jul 2016 21:37:06 GMT

I think its funny how some people worry about the tax implications before they win. Win first, then worry. It is what it is.

Reply #3

jacintasc — Wed, 13 Jul 2016 21:32:44 GMT

You pay the standard 25% and the state tax for which the ticket BELONGS to. Not the state you live in.

So if your ticket says NEW JERSEY Lottery then you pay New Jersey

Some have different tax rates for out of states residents, but those are rare.

Reply #2

pahunter — Wed, 13 Jul 2016 21:04:31 GMT

So NJ isn't going to wack me for 5% or 8

Reply #1

Raven62 — Wed, 13 Jul 2016 20:53:58 GMT

No! Just PA!

https://revenue-pa.custhelp.com/app/answers/list/search/1/kw/reporting%20gambling%20winnings%20from%20NJ/suggested/1

PA resident winning lottery in NJ - Taxes

pahunter — Wed, 13 Jul 2016 20:04:09 GMT

I live in PA (primary residence). Say I won the lottery (scratch off for over 100k) in NJ. Would I need to pay income tax in both NJ PA and just PA? If so, what kind of damage am I looking at