Husband Won the Lottery ... Ask TaxMama ... April 23, 2004

Ask TaxMama.Com
Tax Information With A Mother's Touch

Published by Eva Rosenberg, MBA, EA
Volume 6, Issue 256 April 23, 2004


	Things to Do or Know in April
	Cancelled Debt
	Car Tax
	Payroll Checks
	Husband Won the Lottery


	FTP Double-Dips Into Taxpayers' Accounts


	The Little Old Man

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Husband Won the Lottery

» From: Brooklyn, NY

Dear TaxMama:

My husband came into a some money (150,000) via the lottery in NJ. We paid the IRS and do not owe them, NJ does not collect tax on lottery winnings. New York State, however, is claiming 10%.

The money is all gone, thanks to my husband. Is there anyway we can lower this amount?

If we won it in NY they would charge 6.9%

Roni

Oh Roni,

Spank that child!

How awful, to turn a wonderful experience like that into a problem.

If you had won it in NY, you most likely would not have to pay NY taxes at all.

If you had moved to NJ, you'd be fine, too.

Under these circumstances .... I guess it all depends on what you did with the money. If any of the money went to charities, you'll have a deduction for that.

If any of the money went to start a business, you may have a deduction for that.

Otherwise, your best bet is just to set up an installment agreement with the State of NY and arrange to pay the debt over time.

At least the taxes you pay NY will be a deduction on your IRS tax return.

On the other hand, it may be worth the investment to sit down with a good, local tax pro and see if they can look over your finances and find ways to cut the tax.

Next time, grab half his money and put it away. (Not just for taxes --- for the future...)

I do hope you had fun with the money, too.

Best wishes,

Eva Rosenberg
Your TaxMama

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