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01-12-2016, 02:32 PM
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#1
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Location: St. Louis
Posts: 1,563
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Powerball queston
I heard a lady on tv say you could buy a ticket then if you won move before claiming it to a tax free state. Would this work?
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01-12-2016, 02:55 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,391
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 Quote:
Originally Posted by rec7
I heard a lady on tv say you could buy a ticket then if you won move before claiming it to a tax free state. Would this work?
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In general (with a few exceptions), money is taxed where earned. Therefore you would have an uphill battle to establish residence somewhere other than where you lived when you bought the ticket. In my opinion it wouldn't work.
If you took the annuity then perhaps you can make the case each year that your new residence is where the money should be taxed (or not).
States can get pretty aggressive about taxation. However the courts have rules that pensions (for example) are not taxable where earned but are taxable where your residence is.
- Good luck with your new earnings. How does one spend a billion in one lifetime ?
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01-12-2016, 02:55 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Apr 2011
Location: Madison
Posts: 1,337
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Hey, it's a "lady on TV" it must be true.
__________________
Wild Bill shoulda taken more out of his IRA when he could have. . . .
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01-12-2016, 03:00 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Jul 2007
Location: St. Louis
Posts: 1,563
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Quote:
Originally Posted by dtbach
Hey, it's a "lady on TV" it must be true.
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I should have said news lady. It just sounds to good to be true.
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01-12-2016, 03:28 PM
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#5
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,357
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Some guy on the internet thinks the news lady is mistaken.
From the Powerball website:
Quote:
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You do NOT have to cash the ticket at the same store, but you do have to cash the ticket in the same state.
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01-12-2016, 04:20 PM
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#6
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,094
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I've already started packing to move, calling the movers so they can show up Thursday.
After 6 months in FL, I'll phone in and collect my Billion 
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01-12-2016, 04:25 PM
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#7
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Apr 2004
Location: South Texas~29N/98W Just West of Woman Hollering Creek
Posts: 6,674
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Buy a Powerball ticket? Not me. I got folks offering them for free. Can you beat that?
Quote:
Come in today and tomorrow for a FREE
Powerball lottery ticket when you get your oil changed! Don't miss out on your
chance for 1.5 BILLION dollars!!
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__________________
Part-Owner of Texas
Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx
In dire need of: faster horses, younger woman, older whiskey, more money.
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01-12-2016, 05:30 PM
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#8
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gone traveling
Join Date: Oct 2007
Posts: 1,135
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Powerball queston
Marketing is a beautiful thing. I tipped my server the other day and added in a single drawing ticket for the big powerball. Ya never know. If she wins hopefully she remembers me ....
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01-12-2016, 05:47 PM
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#9
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: The Beautiful Blue Ridge Mountains
Posts: 2,791
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Err, make that one in 300 million. 
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01-12-2016, 06:29 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Jun 2013
Location: Columbus
Posts: 1,118
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Quote:
Originally Posted by dtbach
Hey, it's a "lady on TV" it must be true.
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I'd be more certain if it was "a lady on ask.com"
Sent from my iPhone using Early Retirement Forum
__________________
Ohio REFI PE ENG and Investor as of 2016
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01-12-2016, 07:21 PM
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#11
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,371
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Actually it has me thinking... we are currently in FL which has no state income tax and I bought the ticket here and will be here Wednesday when the drawing occurs... so if I am a cash basis taxpayer and formally change residence before I cash the ticket, could I effectively avoid state income taxes in my home state?
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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01-12-2016, 07:31 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Syracuse
Posts: 3,502
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I had a winning MegaMillion ticket purchased in NY. The convenience store clerk in Wyoming wouldn't cash it. And he's a professional.
I had to wait till after my journey to collect my $3.
Sent from my iPhone using Early Retirement Forum
__________________
“No, not rich. I am a poor man with money, which is not the same thing"
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01-12-2016, 09:25 PM
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#13
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2005
Posts: 17,241
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State income taxes are a strange animal... many states with many different laws...
From my small knowledge, income is NOT taxed where earned per se...
I knew people who lived in NY and did a good amount of work in Texas... and NY taxed them on all income...
Now, for awhile I lived in NY, worked in NJ but had residence in Texas... I had to pay (really, it was my company) taxes in NJ and NY since Texas has no income tax... so, even though all my income was from work in NJ I still had to pay NY state and NYC city taxes with a deduction for what was paid in NJ....
The states will tax you if they can, but usually give you a break on taxes that were paid to another state... so residence does matter.
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01-12-2016, 11:38 PM
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#14
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Recycles dryer sheets
Join Date: Feb 2014
Location: SF Bay Area
Posts: 289
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Ok, a $2 investment returns 1.5 BILLION DOLLARS, and we're talking about saving on taxes? 
__________________
"The only function of economic forecasting is to make astrology look respectable"
- J.K. Galbraith
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01-12-2016, 11:49 PM
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#15
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2005
Posts: 17,241
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First, if cash value it is less... say $900 million....
But, at a 5% state tax rate (not out of the question) you are going to pay $45 MILLION in taxes just to the state...
Yep, I would be talking about saving on taxes.... it is not an issue with me, but if it were I would be looking to find a way to pay a lot less than $45 mill....
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01-13-2016, 05:12 AM
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#16
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Full time employment: Posting here.
Join Date: Jan 2011
Location: Southern Maine
Posts: 672
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a lot of your tax questions are answered in this article from MarketWatch.
But they do say this:
Quote:
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can you move to Florida or Nevada or Texas, which have no personal income taxes, and thereby avoid any state income tax hit on your future lottery annuity payments? It depends on the laws of the state where you currently reside. This is a question to be researched by your newly hired tax professional (more on that later).
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01-13-2016, 05:25 AM
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#17
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2007
Posts: 13,227
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Quote:
Originally Posted by Texas Proud
First, if cash value it is less... say $900 million....
But, at a 5% state tax rate (not out of the question) you are going to pay $45 MILLION in taxes just to the state...
Yep, I would be talking about saving on taxes.... it is not an issue with me, but if it were I would be looking to find a way to pay a lot less than $45 mill....
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You're still going to have roughly $500M. You're saying that's not enough, so you're going to disrupt your life even further to make it $545M? What are you going to do with $545M that you can't do with $500M?
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01-13-2016, 06:47 AM
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#18
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Thinks s/he gets paid by the post
Join Date: Nov 2006
Posts: 2,288
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Quote:
Originally Posted by RunningBum
You're still going to have roughly $500M. You're saying that's not enough, so you're going to disrupt your life even further to make it $545M? What are you going to do with $545M that you can't do with $500M?
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Give $45 million to my favorite charity (which is not the government) and still have my $500 million?
Thats a joke. This a fairly stupid thread IMHO.
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01-13-2016, 09:06 AM
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#19
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Full time employment: Posting here.
Join Date: Nov 2008
Location: Jacksonville
Posts: 637
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I was thinking the same thing. 
A single winning ticket is worth about $940 million after taxes.
Mike
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