It is always best to consult with a tax professional if you have won the lottery, as there are often other tax requirements based on the specific situation. Additionally, there are a few other strategies such as reinvesting the money into various tax-deferred investments that may also help you reduce your tax bill. In addition to the moral concerns, there are economic and political reasons why Alabama does not allow lottery ticket sales. This material may not be published, broadcast, rewritten, or redistributed. That means the proposal wont go through unless there is a special session called to discuss it. Out of Florida, Georgia, Tennessee and Mississippi, only Georgia protects the identity of jackpot winners and thats below a certain dollar threshold. If all tax obligations are not met then the IRS can take legal action to collect taxes from the winner. Our guide answers all the questions you have and even the ones that you wouldn't think to ask. Though if you're in Mississippi and go buy you some scratch-offs from Louisiana, you're operating perfectly within the law, per point 1. At this time, the states of Montana, Oregon, Missouri, Delaware, Wyoming, Wisconsin, and New Hampshire have no state tax on lottery winnings. It's not like, say, poker, where only a few states offer this on location. In other words, even though the lottery withholds taxes when providing a payout, any taxes that were not withheld must be paid later when filing taxes. The most important way to stay anonymous after winning the lottery is to take steps to protect your identity, such as setting up a trust or other legal entity, to receive the winnings in. Additionally, a 5% withholding tax is applied to winnings of more than $5,000 from any single source. Whether or not you should pay off your mortgage if you win the lottery is a big decision and largely depends on your personal financial situation. The Louisiana Lottery Corporation was created, and in 1991 the first scratch-off lottery tickets were sold. Why these five states don't sell lottery tickets - CNN Cash4Life is a favorite in the Southeast, and a popular Alabama lottery for those who can get their hands on a ticket, for only $2.
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