If I win a out of state Lotto or Power Ball what would I have to do to collect and what about taxes?

Answer 1

You have to go to a claim center in the state that sponsors the game; in the case of Powerball this would be any state that sells their tickets. Usually they calculate and withhold up-front taxes *on your winnings only* unless you request any adjustments at that time. For an in-state game they can usually validate the ticket same day and pay within a week or so; multi-state games like Powerball may take a few weeks to actually cough up the check.

It's a good idea to sit down with an attorney and an accountant before making your claim, especially if you have other financial situations which could significantly alter your tax due. Once you hit the claim center, they're more worried about publicity than getting the numbers right - that's your problem.

Incidentally, lottery winnings are not 'earned' income so Social Security tax is not due; but I think the income tax level may be different especially at the state level.

Answer 2

Show your winning ticket, then pay the taxes!!!!