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Member
posted
If and when Sam finally wins a substantial amount of lottery dough,
For this hypothetical scenario we'll say more than $750,000.00.

Should he expect to be taxed by both his home state and the state where the winning lottery ticket was purchased?

And of course the feds.





Safety, Situational Awareness and proficiency.



Neck Ties, Hats and ammo brass, Never ,ever touch'em w/o asking first
 
Posts: 55391 | Location: Henry County , Il | Registered: February 10, 2004Reply With QuoteReport This Post
Political Cynic
Picture of nhtagmember
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Short answer is yes. Everyone will want a slice of it. And you will most likely have to file an out of state tax return for that year as well
 
Posts: 54153 | Location: Tucson Arizona | Registered: January 16, 2002Reply With QuoteReport This Post
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Yes but in most jurisdictions you get a credit for the out of state payments so it’s really a rate discussion.


“So in war, the way is to avoid what is strong, and strike at what is weak.”
 
Posts: 11308 | Registered: October 14, 2004Reply With QuoteReport This Post
Man Once
Child Twice
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I don’t care if I had to pay both, I’d be a happy boy. More than I had. But the credit is nice.
 
Posts: 11158 | Location: NE OHIO | Registered: October 22, 2004Reply With QuoteReport This Post
drop and give me
20 pushups
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You can not win if you do not buy a ticket. Yes everybody is going to want their slice of the pie. Including family and looooong lost family relatives that you have never heard of. .............................. drill sgt.
 
Posts: 2191 | Location: denham springs , la | Registered: October 19, 2019Reply With QuoteReport This Post
Now in Florida
Picture of ChicagoSigMan
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quote:
Originally posted by hrcjon:
Yes but in most jurisdictions you get a credit for the out of state payments so it’s really a rate discussion.


THis is correct. The state where you bought the ticket gets first crack. They will tax your winnings at their current rates. Then you will get a credit for those taxes paid against the taxes owed to your state of residence. If the state where you live has a lower rate than the state where you purchased the ticket, you won't owe additional taxes. If the rate is higher, the you will pay the difference. Ultimately, you'll end up paying taxes at the rate imposed by the state with the higher tax rate, but you won't be double taxed.
 
Posts: 6084 | Location: FL | Registered: March 09, 2009Reply With QuoteReport This Post
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If Sam resides in Illinois is it foolish for him to purchase a ticket or three in Iowa?
Or
For $1,000,000.00,
Gross pay out ,
Sam shouldn't be the least bit concerned ?

Thank you for your respondings





Safety, Situational Awareness and proficiency.



Neck Ties, Hats and ammo brass, Never ,ever touch'em w/o asking first
 
Posts: 55391 | Location: Henry County , Il | Registered: February 10, 2004Reply With QuoteReport This Post
Optimistic Cynic
Picture of architect
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quote:
You can not win if you do not buy a ticket.
The way I figure the odds of winning, buying a ticket doesn't change anything.
 
Posts: 7008 | Location: NoVA | Registered: July 22, 2009Reply With QuoteReport This Post
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quote:
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If Sam resides in Illinois is it foolish for him to purchase a ticket or three in Iowa?

^^^^^^^^^^
Gov. Pritzker would say so. Illinois needs the revenue. Sam should move to Iowa where the living is better.
 
Posts: 17748 | Location: Stuck at home | Registered: January 02, 2015Reply With QuoteReport This Post
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Picture of sigcrazy7
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When is the taxable event? At the time you won the lottery, or at the time you redeemed the ticket?

Let's say an Illinois resident buys his ticket in Iowa. Since most lotteries give you up to six months to redeem, could you hold the ticket, move across the river, establish IA residency, redeem the ticket, and then just give IL the finger?

Or better yet, if you live in Bristol(VA/TN), always buy your ticket on the TN side of the line, and then move if you win.



Demand not that events should happen as you wish; but wish them to happen as they do happen, and you will go on well. -Epictetus
 
Posts: 8292 | Location: Utah | Registered: December 18, 2008Reply With QuoteReport This Post
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the time you redeemed the ticket.
 
Posts: 17748 | Location: Stuck at home | Registered: January 02, 2015Reply With QuoteReport This Post
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Since your chances of winning BIG are so slim, I wouldn’t worry about it.

However, what if you win $2 or $5? Not entirely unreasonable, but you have to return to the state to collect it. And it probably won’t be worth it. And if you travel back to that state for whatever reason, you have to remember to take the ticket. Yes, I’m speaking from experience.
 
Posts: 264 | Registered: March 08, 2013Reply With QuoteReport This Post
Member
Picture of cne32507
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quote:
Originally posted by sigcrazy7:
When is the taxable event? At the time you won the lottery, or at the time you redeemed the ticket?

Let's say an Illinois resident buys his ticket in Iowa. Since most lotteries give you up to six months to redeem, could you hold the ticket, move across the river, establish IA residency, redeem the ticket, and then just give IL the finger?

Or better yet, if you live in Bristol(VA/TN), always buy your ticket on the TN side of the line, and then move if you win.


I think you are on to something here...Seems to me receiving the winnings would trigger a taxable event: not purchasing an anonymous ticket. Move and then cash the ticket in Iowa? Move to Nevada then cash the ticket? Nevada residency requirement is easy-peasy. Reminds me of the song: "Take the Money and Run"
 
Posts: 2520 | Location: High Sierra & Low Desert | Registered: February 03, 2011Reply With QuoteReport This Post
אַרְיֵה
Picture of V-Tail
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quote:
Since your chances of winning BIG are so slim, I wouldn’t worry about it.
I bet that the reason bendable asked this question is, he has the winning ticket and is trying to figure out how to deal with it.



הרחפת שלי מלאה בצלופחים
 
Posts: 31826 | Location: Central Florida, Orlando area | Registered: January 03, 2010Reply With QuoteReport This Post
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quote:
Originally posted by V-Tail:
quote:
Since your chances of winning BIG are so slim, I wouldn’t worry about it.
I bet that the reason bendable asked this question is, he has the winning ticket and is trying to figure out how to deal with it.


I don't see what is problem is then ... obviously he should just split the money with anyone that has replied to this thread. Problem solved.
 
Posts: 264 | Registered: March 08, 2013Reply With QuoteReport This Post
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quote:
Originally posted by V-Tail:
[QUOTE]I bet that the reason bendable asked this question is, he has the winning ticket and is trying to figure out how to deal with it.


That's a great sentiment, thanks.

But I got $750,000.00 gross , ( $500,000.00 net)
Covered

That's a nice ranch style house in a good neighborhood in Iowa ,a new vehicle and some bills.

Again ,keep up with good vibes





Safety, Situational Awareness and proficiency.



Neck Ties, Hats and ammo brass, Never ,ever touch'em w/o asking first
 
Posts: 55391 | Location: Henry County , Il | Registered: February 10, 2004Reply With QuoteReport This Post
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