Help Settle A Lottery Argument

Reply #18

GiveFive — Tue, 15 May 2018 11:33:56 GMT

I believe all state winners who purchase their ticket in a different state from their residence, are notified in writing they may owe additional taxes in their resident state. They likely notify your home state as well.

This statement makes a lot of sense to me because states have reciprocity agreements on many things (I'm sure non-state resident gambling winnings are among them) and they especially have them in place with their bordering states. Why wouldn't they do that? It's mutually bene... [ More ]

Reply #17

Artist77 — Tue, 15 May 2018 00:16:03 GMT

Remember there is an off setting credit for state taxes. The state in which you purchased the ticket gets their money first.

Win in state A with 8% rate but live in state B with 10% state tax rate. You owe your resident state 2%. Win in state B with 10% state tax rate but live in state A with 8% rate, you owe nothing to state A since the 10% you paid was more than 8%.

I believe all state winners who purchase their ticket in a different state from their residence, are notified in wri... [ More ]

Reply #16

GiveFive — Mon, 14 May 2018 12:33:43 GMT

I don't know how someone might be caught.

I think it's not if your out of state win will be uncovered by your state of residence's taxing authority, it's more of a question of when they'll catch it. It isn't 1918. That's about the time when players very likely could have been able to say nothing and nobody would've known the difference! G5

Reply #15

Stack47 — Wed, 09 May 2018 18:38:24 GMT

In both Ohio and Kentucky taxpayers must fill out forms similar to the IRS 1040s and use the Federal adjusted gross income which is listed AFTER other income on the 1040. Kentucky has form 740 for full-year residence and form 740-NP for part time residence.

The Ohio state tax is 4% and the KY tax is 6% so a Northern KY player might decide to purchase jackpot game tickets in Ohio hoping to save 2% in taxes or claim anonymously. Most bordering states have reciprocal tax agreements so Ohio woul... [ More ]

Reply #14

RJOh — Wed, 09 May 2018 17:52:17 GMT

If your winnings are more than $600, you get a W-2 to file with your Federal taxes. Most State tax forms use the figures from your Federal forms to calculate your state taxes.

Reply #13

music* — Wed, 09 May 2018 17:40:44 GMT

Jackie Gleason, Hamina hamina hamina...

Reply #12

Coin Toss — Wed, 09 May 2018 15:46:32 GMT

lottolaughs,

This poses a 'sticky wicket' I think.

With all the information available today I don't think it would be any challenge at all for any government agency to find out where a jackpot winner was living when they bought the ticket.

Well Jackpot Winner, we see you moved here after winning the jackpot but show no record of you residing in our state prior to that. Where were you living when you bought the ticket?

Winner:

Hamina hamina hamina....

As the saying goes, the d... [ More ]

Reply #11

lottolaughs — Wed, 09 May 2018 13:08:21 GMT

First I am not worried about this in the least because I don't even play jackpot games. This was a question about whether if you win in one state...does the state you actually live in find out about it or how do they find out or if you can get away with not claiming it,lol.

I want to thank everyone for their input

And Nikki's right. It's good to be prepared ahead of time when it comes to taxes and such if you play jackpot games.

Reply #10

Nikkicute — Wed, 09 May 2018 06:16:18 GMT

Don't you think this how most lotto winners lose their money? By NOT thinking about taxes and

other important issues before the big win? Because you never know, it just might be you!

If anyone plays the bigger games start thinking about this stuff now!

TheLotter offers many out of state Jackpot lottos and you if play you better start thinking about

how your going to handle those taxes before they get a handle on you.

Reply #9

music* — Tue, 08 May 2018 15:19:06 GMT

Reply #8

rundown99 — Tue, 08 May 2018 10:27:29 GMT

I think you need to focus on winning any prize first before even worrying about this.

Reply #7

BobP — Tue, 08 May 2018 07:34:08 GMT

If the jackpot is large enough, consider moving to that state and establishing residence before cashing in the ticket, or moving to a state like Florida that does not have a state income tax.

BobP

Reply #6

music* — Mon, 07 May 2018 22:13:55 GMT

Depending on how big your prize is: You can hire a CPA, Accountant, an Enrolled Agent, or even a tax lawyer.

Your CFP, Certified Financial Planner may help you find the correct professional.

Reply #5

grwurston — Mon, 07 May 2018 17:59:44 GMT

From the USAMEGA site FAQ's.

If I live in a state that taxes prizes, but bought my ticket in a state with no tax on prizes, do I still need to pay state tax?

Yes, you do. Think of lottery prizes as regular earned income from a job. Just because you may work in a different state, that doesn't permit you to get away with not paying state income tax in your state of residence. The lottery works the same way.

Whether it's income from a job or income from gambling, the state where the mon... [ More ]

Reply #4

Raven62 — Mon, 07 May 2018 17:40:04 GMT

If their were two Winning Tickets from two different States and You had both of them. If You Claimed Only one Jackpot then You'd have only half a Jackpot, to get the full Jackpot You'd need to Claim your Winnings in both States

Reply #3

AllenB — Mon, 07 May 2018 17:37:41 GMT

He thinks you could get away with it.

Maybe For a While; but, I would not want to deal with the Franchise Tax Board when they eventually find out.

I personally think that Ca has no right to tax money not earned in California; but, that is a Belief that only leads to trouble. I still get bills form those B'tarts, from my old business. They are very aggressive collectors to be avoided at all cost.

I would think it best to be a little less Greedy and Pay the Tax.

JMHO

Allen

Reply #2

CARBOB — Mon, 07 May 2018 17:36:57 GMT

I think you answered your own question. When it comes to money and the government, you lucky to get a part of anything.

Reply #1

wander73 — Mon, 07 May 2018 17:29:54 GMT

I'm not sure however my cousin hit in Delaware park for over $20000 and he got taxed almost 6000. The government gonna find out and the States going to anyway because if you hit huge that it is you have to clean it and be responsible for your actions

Help Settle A Lottery Argument

lottolaughs — Mon, 07 May 2018 16:58:17 GMT

This might be the dumbest question ever....and it even may have been answered on here before,I'm not sure.

My friend and I are in a tiff about what happens if you won a big jackpot in another state besides your own.

Won't the lottery alert your OWN state about your winnings in THEIR state?

I say there's no way you could get away with not claiming your winnings in your own state.

He thinks you could get away with it.

Is he nuts or not