Pennsylvania lottery scam
Quote: WizardofnothingWe already know the lottery house edge is basically 50 percent on the big 4 number- how the f does the state now collect a tax on winning on top of what they already tax you in house edge- this is crazy
I agree--that is double taxation. Here's a link which says: "Are Lottery prizes taxable? Yes. By law, all Pennsylvania Lottery prizes are taxable income and should be reported by winners when filing federal and state taxes."
I looked up the corresponding rule for NJ, and NJ lottery winnings are non-taxable but only if the winnings are less than $10,000 (source).
I think most of us noticed this as teen agers. If you really want to blow your top, the Ohio lottery wins about an average of 30,000,000 a year due to unclaimed winnings. I think this should be returned to the players and not kept so it can go to corporate welfare. In a roundabout way, it does or goes to whatever political paybacks.Quote: WizardofnothingWe already know the lottery house edge is basically 50 percent on the big 4 number- how the f does the state now collect a tax on winning on top of what they already tax you in house edge- this is crazy
Quote: WizardofnothingWe already know the lottery house edge is basically 50 percent on the big 4 number- how the f does the state now collect a tax on winning on top of what they already tax you in house edge- this is crazy
Is this a new rule? PA lottery has never been state taxable AFAIK. It has always been federally taxed.
http://www.philly.com/philly/blogs/real-time/Pa-Lottery-winnings-now-taxable.html
What a freaking joke. Good thing I never play.
Now for the big 4. When I used to pick up tickets for my grand pap he would have me do something like big 4 50/50. I have no idea what that means but I assume it was making .50 tickets instead of $1 tickets. I think I remember him doing this because if it were $1 ticket you had to send away for the money but .50 you got paid at the retailer. This would also work to stay under the $600 taxable amount.
eta: what is the payout for big 4, 5k? I guess they won't sell .15 tickets.
Quote: onenickelmiracleI always assumed all the lotteries taxed winnings.
Just federally. Been a known fact, if you're going to play PB or MM, do so in a state with no state income tax.
Didn't know that either just because I thought your home state would tax you no matter. So actually thought you should just buy in your home state, so two states don't wind up taxing you for the same win. You would have to move before you won I thought. Wish I had the luxury to make this worry worth worrying about.Quote: IbeatyouracesJust federally. Been a known fact, if you're going to play PB or MM, do so in a state with no state income tax.
Confirmed for California - California Government Code section 8880.68:
"...no state or local taxes shall be imposed upon the following:
(a) The sale of lottery tickets or shares of the lottery.
(b) Any prize awarded by the lottery..."
The one exception is, if a lottery prize is a non-cash item, it is subject to subsequent property or vehicle tax.
Quote: BozLike cigarettes, the lottery is another tax on the poor. The group liberals say they are concerned about, yet always go after when they need to raise revenue such as PA just did. Minority's are hit the hardest as they are among the largest players of the daily number type games. Many C-Stores in poor neighborhoods are the highest volume lottery stores. Once volume hits a certain level, you can add a 2nd terminal. The company I worked for years ago is the biggest PA lottery dealer because Wawa and Sheetz didn't want the business. All of the stores with multiple machines were in poor areas such as inner cities.
I had a friend who owned one of those inner city convince stores. Lottery isn't super profitable for the retailers, but still worth doing since the lottery pretty much does all the backend work for you.
His biggest business was check cashing. He'd cash several hundred thousands in paychecks every week, keeping 3%.
Quote: WizardofnothingWe already know the lottery house edge is basically 50 percent on the big 4 number- how the f does the state now collect a tax on winning on top of what they already tax you in house edge- this is crazy
Didn't know they changed this, they used to advertise the winnings were state tax exempt. I guess you have to tip the bookie now?
Quote: ThatDonGuyApparently, the only states that do not tax lottery winnings (on tickets bought within that state, presumably) are California and Delaware.
Confirmed for California - California Government Code section 8880.68:
"...no state or local taxes shall be imposed upon the following:
(a) The sale of lottery tickets or shares of the lottery.
(b) Any prize awarded by the lottery..."
The one exception is, if a lottery prize is a non-cash item, it is subject to subsequent property or vehicle tax.
New Hampshire doesn't tax lottery winnings either.
