Lottery

[Sudsy 44]

2 hours ago, PK90 said:

Stupid question ....

If the winning ticket holder is a non-resident of NJ, do they pay NJ tax or his home state tax?

That's a very good question.

So if you live in NYC do you have to pay Federal, NJ, NY, and NYC taxes ? 

You won 1 BILLION dollars

Here's 50 bucks, congrats

[Shocker 151]

If it’s like income tax (assume it’s in the same code) you have to pay both your home state’s tax AND the state tax where you got the income. Then if the two states have a reciprocity agreement you petition to get some of it back

 

when I worked summer jobs in college I paid Fed, NJ, PA and Philadelphia taxes. Then I got the privilege to ask PA for that money back (kiss the city taxes goodbye you’ll never see those again) 

[GRIZ 3,369]

On 3/30/2024 at 10:56 PM, PK90 said:

Stupid question ....

If the winning ticket holder is a non-resident of NJ, do they pay NJ tax or his home state tax?

Depends.  I think PA residents pay their state tax.  I could be wrong.

[Grima Squeakersen 482]

On 3/31/2024 at 1:12 AM, Sudsy said:

That's a very good question.

So if you live in NYC do you have to pay Federal, NJ, NY, and NYC taxes ? 

You won 1 BILLION dollars

Here's 50 bucks, congrats

If you won 1 billion and elected the cash option, they are "only" going to pay you ~400 million. The advertised jackpot value assumes that you will elect to take an annuity over 20 years (with the lottery operators making out by keeping the undisbursed portion invested, natch). The web pages for the different games have the cash payout (typically a bit over 40% of the total) listed in small font. So, the jackpot number is a little bit scammy. But if you did win a lottery jackpot worth many, many millions of dollars, your most prudent course might me to find an investment advisor who typically handles such sums, and discuss options such as creating a tax exempt foundation to accept the prize. Then that foundation could make payments to you and your family (in addition to pursuing whatever tax exempt purpose it was nominally set up for, of course) in amounts that would let you manage your reported income to minimize taxes. Obviously, you would need to wait until that was set up to sign and cash the ticket. Or, you could just cash it yourself and let the government walk off with 90% or more of your billion bucks. That, or the annuity option, would probably be the easiest strategy, but I'll be damned if I could ever let that happen :-)

[CMJeepster 2,778]

Or but more ammo...  Or pork roll.

[silverado427 10,729]

I believe the annuity payment is based on  36 payments with 5 % increase each year.