Share

* Would you move to another State to avoid paying State Taxes on your Lottery winnings?

Avatar

* We talking taxes on either Powerball or Mega Million!

Driving Iron Man GIF

weshar75's avatar - Lottery-042.jpg

No I would pay the $10% taxes here in Oregon and continue to stay here too.-weshar75

US Flag

BobP's avatar - bobp avatar.png

Already there, no city or state tax in Florida.   

BobP Type

Stat$talker's avatar - animated sphere.gif
In response to noise-gate

Good question..!!

I don't know if you'd be allowed to escape taxes by such initial means... it's true that you do have time to get your Team of experts together in order to help guide you in your Financial future before you come foward to claim your winnings, but if the winning ticket wasn't purchased in say for instance Fla.?.. I believe you'd still owe Federal and State taxes where it was bought.. I dunno, I may be wrong on it, .. It's rather hard to envision IR$ allowing THAT much revenue to escape their clutches...!! Not sure what the Legal time frame of New Residency would be acceptable by IR$...

But AFTER claiming my winnings, and gittin straight wit Ole Uncle $am?... Yeppp...!!  I'd

                See Ya!  GIT GOOOONE....

 

-Stat$talker 

rcbbuckeye's avatar - Lottery-062.jpg

No state taxes in Texas. I would be staying here. Maybe move to the hill country.

Problem is I gotta win it first.

Just a minor detail....

CDanaT's avatar - Nolz june15.jpg

Same here Rcb....no state taxes and staying put..but definitely moving to the mountain country with at least 300-500+ acres. Our sales tax is at 9 1/4% but property tax is well below the norms of TX.

Avatar
In response to Stat$talker

This is a good question, but I doubt it's possible to avoid state taxes that way. Most states which have state income tax require payment of taxes on income received from that state, even for non-residents.

My state, Louisiana, has 2 versions of it's tax form, one for residents, and one for non-residents or partial year residents, i.e. people who did not reside in the state for 12 months. If an individual receives income from Louisiana, that income is the only income Louisiana income tax needs to be paid on. In other words, if an individual were to in a large jackpot in Louisiana, they would still have to pay Louisiana income tax on it, even if they don't live in Louisiana.  I don't know how it works in other states, just my own.

In Louisiana, if I reside in the state for the full year and I have to pay income taxes to another state, it can be taken as a non refundable credit to my Louisiana state income taxes. I don't know how other states handle it, just my own.

Todd's avatar - Cylon 200.jpg

FYI, those links do not have correct state tax rates.  For example, NJ's rate for lottery winners is actually 10.75%, not the 8% shown in the link.  Tennessee does not have a 1% top rate for lottery winners.  etc., etc., etc.

If you want the current accurate state tax rates (both initial withholdings as well as the final tax bill), check out USA Mega Jackpot Analysis.  For example, here's the current Powerball Jackpot Analysis.

Stat$talker's avatar - animated sphere.gif
In response to PrisonerSix

Yea, I kinda figured as much,.. recalling a similar financial ,Tax situation I found myself in once,.. as I often travel to make ends meet..

So, if LA has such tax ramifications, it'd be safe to bet most other States would too..that's if they have State Income Tax requirements..

Droptop209's avatar - Lottery-062.jpg

No need to move for me.  No state tax in CA

lakerben's avatar - DiscoBallGlowing

If you win either one you would have plenty of money left after taxes.    I wouldn't move I'd party!

Avatar
In response to Stat$talker

*Stat- my question is aimed at either staying or moving " before winning either jackpot."

*Making your decision after the win is moot at that point.

Stat$talker's avatar - animated sphere.gif
In response to noise-gate

Ooh, I understood your question,.. but since you had the term "Taxes" in your question, it stands to reason that you were elluding to whether after hypothetically winning a MM or PB Jackpot, would a winner seek the potential tax shelter in pondering such a Residential change BEFORE claiming it...

So, I'd guess I would stay put then... to keep from getting indicted...!!  LOL   for Income Tax Evasion..!! What good would it be to win THAT kinda Money , then risk havin to pay it out in Legal fees?...Great question tho...

I don't think there's anybody here that'd be willing to send me Cigars in the Slammer..!! Wink

 

-Stat$talker 

Avatar
In response to noise-gate

It looks like lots of people misunderstood your question. Surprised that so many people don't seem to understand you can only cash your ticket in the state where you bought it.

Wonder if anyone has actually moved to a state with no state tax to avoid state taxes just for the unlikelihood of winning a huge jackpot.

TopEnd of thread (1 page)

Welcome Guest

Your last visit: Sun, Nov 28, 2021, 5:41 am

Log In

Log InCancel

Forgot your username?

Forgot your password?