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?
Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
Can you stay quiet long enough to establish residence in your new tax-free state?
Thu Jun 16, 2011 6:29 am
coaster Senior Advisor
Cash: $ 1626.30
Posts: 7990
Joined: 11 Oct 2005
Location: Wisconsin
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.
Thu Jun 16, 2011 6:31 am
oldguy Senior Member
Cash: $ 749.65
Posts: 3645
Joined: 21 May 2006
Location: arizona
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.
Thu Aug 04, 2011 4:53 pm
tonybringa50 Member
Cash: $ 2.20
Posts: 11
Joined: 26 Jan 2012
good one
thanks
Thu Jan 26, 2012 2:57 pm
eastmn Senior Member
Cash: $ 85.80
Posts: 414
Joined: 04 Apr 2010
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?
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.
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.
