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What if I had a big lotto win.

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Money Talk > Taxes

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LottomagicZ4941
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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?

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Post Thu Jun 16, 2011 4:16 am
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oldguy
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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
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tonybringa50
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good one
thanks
Post Thu Jan 26, 2012 2:57 pm
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eastmn
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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
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LottomagicZ4941
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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.

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Post Fri Jan 27, 2012 12:19 am
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naviown
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You must pay your taxes, thats all Smile
Post Thu Feb 23, 2012 5:39 pm
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oldguy
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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
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