If I win the lottery, can I move to another state or Puerto Rico to save on taxes?
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2If you win the lottery, you will have the money to purchase far better tax advice than you can get here. Do so. A few hundred dollars is a cheap investment in that situation.– keshlamJul 26, 2016 at 22:44
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1Lottery winnings are sourced to the State where you bought the ticket– littleadvJul 26, 2016 at 23:34
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@littleadv - In this question you say it's where you live, not necessarily where you bought the ticket: money.stackexchange.com/questions/14259/…– TTTJul 27, 2016 at 14:09
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State tax is the least of your problems. Lottery winners tend to be shredded and wrecked by the impact of receiving more money than their financial education has prepared them for. I would not curse it upon my worst enemy.– Harper - Reinstate MonicaJul 30, 2016 at 22:58
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@Harper exactly.. why would anyone wish millions of dollars on their worst enemies.– NuWinJul 31, 2016 at 7:48
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2 Answers
This would be no different than asking if you can live in one state and earn a paycheck, then move to another state with a lower tax rate before your tax bill is due so you can save on your taxes for that income.
Answer -- No
The tax on lottery winnings is based on the state where the lottery was held, because for legal purposes that's where the winnings are considered to have been earned for taxation purposes.
Also, changing where you live after earning money does not change your tax liability at all. You still owe the state where the money was earned the tax that is due.
I hope this helps.
Good luck!
answered Jul 30, 2016 at 15:24
No. You owe taxes in the state you made the money.
So unless you can convince the lottery company to retroactively move to Puerto Rico or such, you can't.
As others said, if you win, that should not be your worries..
