About Taxes

May 26, 2009, 2:13 pm

I was thinking yesterday about the powerball being up to $222 million and was thinking of maybe getting my son to go cross the river from his girl friends into Ky and playing some numbers for me.I think I am right on this but wanted to be sure about this.Lets say if I would get lucky enough and win it I know I would have to pay the fed tax and Ky taxes but since I live in Ohio I would also pay Ohio taxes on the winnings? I am sure i do but wanted to be sure on that.Sorry if this has been asked before.

MaddMike51

May 26, 2009, 3:13 pm

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In response to grandpajohn

A lot of states have reciprocating tax agreements with neighboring states.This is so people that live in one state but work in another state don't pay taxes in both states.Lottery winnings may or may not fall under these agreements because of the amount of money involved.Check with a tax specialist to find out where your state and KY stand on this issue.

GamerMom

May 26, 2009, 3:36 pm

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also...since you are not the one buying the ticket bodily you have to be careful. I have heard that if I have a winning ticket and I give it to someone else and they claim it, that will be considered a gift and I have to pay taxes on it. I'm not sure exactly how true that is but i would not put anything past the IRS.

grandpajohn

May 26, 2009, 5:43 pm

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In response to GamerMom

Don't thank I would have a problem there. I'll be paying for the ticket and even before it is drawn I will have the ticket in my hands.Plus if i was so lucky in winning it I would be the one claiming it.

unseen

May 26, 2009, 6:52 pm

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hehe, I think the last thing I'm worried about if I hit the Powerball is which state I'll be paying taxes in. Big Grin

Todd

May 26, 2009, 8:21 pm

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In response to grandpajohn

Check out the Powerball Jackpot Analysis page at USA Mega: http://www.usamega.com/powerball-jackpot.asp

Not only will it give you the breakdown of taxes, but the substantial notes at the bottom of the page provide lots of extra info that may be useful.

Also, if you click the Powerball FAQ page at the same site, you find an answer to your specific question: http://www.usamega.com/powerball-faq.htm

grandpajohn

May 27, 2009, 1:18 am

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In response to Todd

Ok thanks Todd

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