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Mrcoolsoul

United States
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April 12, 2002
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Jul 23, 2002, 4:38 pm

The question was raised before asking if someone who lived in New York went and played the lottery in neighboring New Jersey and won would the winner have to pay the state tax in the state they played in or would it be the state the winner actually lives in. I don' know if this helps, but, at the PA lottery website there's a news release about someone who won in PA who is from NJ and in the article it only mentions having to pay the federal tax. No mention of the state(which is %2.5 in PA).

Here's the article :
http://www.palottery.com/lottery/PressReleases/view.asp?Q=29333
CASH Only

United States
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June 5, 2002
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Jul 23, 2002, 4:44 pm

I'm sure he/she still owed NJ income tax, since the win was _not_ through the NJ Lottery.
Mrcoolsoul

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Jul 23, 2002, 4:49 pm

Is it %2.5? I thought it was. But now I read at the PA site that there isnt any state tax :-\
Littleoldlady

100

Clarksville
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July 15, 2002
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Jul 23, 2002, 4:54 pm

If the state that they won in has state tax, their winnings will be taxed by the state in addition to Federal.

If you know your number is going to hit, have patience and then KILL IT!

You never know when you will get another hit.
smd173

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June 30, 2002
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Jul 23, 2002, 5:32 pm

Where did you come up with the 2.5% number for PA? There is no state tax on lottery winnings in PA, and the state tax on goods is 6%.
Mrcoolsoul

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Jul 23, 2002, 7:50 pm

When I first started getting into playing the lottery a couple months ago I checked the FAQ at palottery.com and I am fairly certain it said %2.5
smd173

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Jul 23, 2002, 7:56 pm

You must have confused it with another state. Here is from the PA Lottery website History page:

July 21, 1983, lottery winners no longer required to pay state income tax on their prizes.
EZMoney

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June 22, 2002
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Jul 23, 2002, 10:19 pm

there is a 2.8% pa state lottery tax that is "set aside" before every drawing. they are sorta paying it for you. so if the cash in thr prize pool is $3M for the jackpot they have already set aside the 2.8% needed to pay state taxes on that $3M. i consider that a tax. they are just distorting the truth.

http://www.lotterypost.com/thread.aspx?tp=168590&q=ezmoney+powerball&rp=search&get=960653
EZMoney

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June 22, 2002
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Jul 23, 2002, 10:38 pm

there is a 2.8% state tax. the winner just doesnt pay it.

http://www.lotterypost.com/thread.aspx?tp=168590&q=ezmoney+powerball&rp=search&get=960653
EZMoney

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June 22, 2002
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Jul 23, 2002, 10:39 pm

close but not quite

http://www.lotterypost.com/thread.aspx?tp=168590&q=ezmoney+powerball&rp=search&get=960653
CASH Only

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Jul 24, 2002, 2:28 am

Jackpot pool money goes directly to MUSL, doesn't it (until the jackpot is hit)?
EZMoney

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June 22, 2002
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Jul 24, 2002, 7:09 am

not sure how the $dough$ is handled but they also pay the 2.8% for pb winnings over $5K. so if you won $100G you still only pay federal.

http://www.lotterypost.com/thread.aspx?tp=168590&q=ezmoney+powerball&rp=search&get=960653
smd173

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Jul 24, 2002, 9:22 am

EZ,
Thanks for clearing that up. I'm sure you know best considering your recent win.
MrHappy

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April 24, 2002
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Jul 24, 2002, 9:26 am

I suspect New York would still go after you for income tax because you 'didn't pay your fair share' to the other state. Indiana, right next door to me, doesn't have a state tax on lottery winnings, BUT, as they put it on their web site:IF YOU LIVE IN ANOTHER STATE WITH AN INCOME TAX, THAT STATE MAY REQUIRE YOU TO PAY IT AN INCOME TAX. My understanding is that many states have 'income sharing' agreements between states when it comes to cross-border incomes/residences. Now, the real question is:Can you become a legal resident of PA (or Indiana in my case) before claiming your prize? There are always tax loop holes. But really, the only person here that has to worry about these questions is......therock!
CASH Only

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Jul 24, 2002, 10:54 am

nt

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