Home     Forum     401k     401k Rollovers
    Register   Login   Members   Search   FAQs     Recent Posts    




What if I had a big lotto win.

Reply to topic
Money Talk > Taxes

Author Thread
LottomagicZ4941
Senior Member


Cash: $ 1.66

Posts: 2640
Joined: 02 Dec 2004
Location: Earth
What if I had a big lotto win.  Reply with quote  

Would I get hit with regular state income tax in CO or could I high tail it to WY and TX real fast and switch my drivers licence before collecting the winnings?

Or would I owe CO from the instant I win?

If I take annuity can I go to a lessor tax state and only have to pay one year to CO?

Non promotional Facebook Jail regular forum inquiry
Promotional post in advert section for new Facebook group for those building a downline
Post Thu Jun 16, 2011 4:16 am
 View user's profile Send private message Visit poster's website Yahoo Messenger
coaster
Senior Advisor


Cash: $ 1626.30

Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
 Reply with quote  

Can you stay quiet long enough to establish residence in your new tax-free state? Laughing
Post Thu Jun 16, 2011 6:29 am
 View user's profile Send private message
coaster
Senior Advisor


Cash: $ 1626.30

Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
 Reply with quote  

I'm guessing the state in which you resided on the date of the lottery would try to collect, but you'd have plenty of money to hire lawyers to prove that income is earned upon constructive receipt of same. Very Happy
Post Thu Jun 16, 2011 6:31 am
 View user's profile Send private message
oldguy
Senior Member


Cash: $ 733.25

Posts: 3565
Joined: 21 May 2006
Location: arizona
 Reply with quote  

quote:
If I take annuity can I go to a lessor tax state and only have to pay one year to CO?


I think that is the case. But then you would be stuck with a 20 year annuity, be careful not to let the 'tax tail wag the dog', the goal is to get the most money for yourself, not to avoid taxes.
Post Thu Aug 04, 2011 4:53 pm
 View user's profile Send private message
tonybringa50
Member


Cash: $ 2.20

Posts: 11
Joined: 26 Jan 2012

 Reply with quote  

good one
thanks
Post Thu Jan 26, 2012 2:57 pm
 View user's profile Send private message
eastmn
Senior Member


Cash: $ 85.80

Posts: 414
Joined: 04 Apr 2010

 Reply with quote  

Just curious, but is there any way to pay tax as capital gains and not income tax? Winnings, yes, but what if winner is corporate investment structured? Wishful drinking? Wink

Tax Court Rules Lottery Winnings Are Not Capital Gains
http://www.taxfoundation.org/blog/show/1997.html

...
Post Thu Jan 26, 2012 6:28 pm
 View user's profile Send private message
LottomagicZ4941
Senior Member


Cash: $ 1.66

Posts: 2640
Joined: 02 Dec 2004
Location: Earth
 Reply with quote  

quote:
Originally posted by oldguy
quote:
If I take annuity can I go to a lessor tax state and only have to pay one year to CO?


I think that is the case. But then you would be stuck with a 20 year annuity, be careful not to let the 'tax tail wag the dog', the goal is to get the most money for yourself, not to avoid taxes.


Annnuity could put one in a higher tax rate year after year.

But I wouldn't mind getting stuck with an annuity. You get a reduction if you don't take annuity option.

Non promotional Facebook Jail regular forum inquiry
Promotional post in advert section for new Facebook group for those building a downline
Post Fri Jan 27, 2012 12:19 am
 View user's profile Send private message Visit poster's website Yahoo Messenger
naviown
New Member


Cash: $ 0.80

Posts: 4
Joined: 23 Feb 2012
Location: New York
 Reply with quote  

You must pay your taxes, thats all Smile
Post Thu Feb 23, 2012 5:39 pm
 View user's profile Send private message
oldguy
Senior Member


Cash: $ 733.25

Posts: 3565
Joined: 21 May 2006
Location: arizona
 Reply with quote  

quote:
Annnuity could put one in a higher tax rate year after year.


I think you are afalling for the old urban legend that earning more money "puts you in a higher bracket". That only applies to the "extra' income, not your usual income.
Post Thu Feb 23, 2012 5:59 pm
 View user's profile Send private message

Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      





Money Talk © 2003-2016