Meredith collects data to deliver the best content, services, and personalized digital ads. We partner with third party advertisers, who may use tracking technologies to collect information about your activity on sites and applications across devices, both on our sites and across the Internet. What Happens If You Buy A Lottery Ticket In Another State? DISCLAIMER: I am not a legal expert of any kind, nor a tax expert. I can tell you what generally happens, but if you want a definitive advice for your own personal situation then you need to ask your tax office or a licensed tax professional. Are You Allowed To Buy A Ticket In Another state? If you’re on vacation in another state, you can play in that state. If you live near a state border and can easily reach a store in the other state, you can play. Even people from overseas can buy tickets too!
So you do NOT have to be a state resident to be able to play in that state, or indeed any state. The next thing to realise if you buy a lottery ticket in another state, is that you cannot claim the prize in your state. You have to claim from the state where you bought the ticket. Yes, this even applies to multi-state games like Powerball and Mega Millions. This is because each state has it’s own lottery company that runs all the games that you can play there. Your local store will not be able to pay it. For larger prizes you will have to send in a claim form to the lottery company for that state where you bought the ticket. Some people think they can beat the tax system by crossing state lines to buy their tickets. My state has higher tax than the neighboring state, so I’ll be cunning and get my ticket there. This kind of cunning lottery system to beat the tax man will not work anyway.
And of course tax evasion will get you a jail sentence. For a jackpot the lottery company will deduct the tax before you even get the prize anyway. So the federal and state taxes for the state where the ticket was bought will already have been paid before the money hits your bank account. However, your state will want their state taxes too! So you have to pay double tax? That is, the extra that you thought you were saving by playing in the neighbor state! IRS returns anyway, but what if they are wins from another state? And can you deduct the cost of what you spent on tickets from those winnings? This rapidly becomes a very confusing area as we’re talking about 47 different jurisdictions each with their own unique tax laws.
So Is It Worth Buying A Lottery Ticket In Another State? If it’s convenient though because you’re travelling, on vacation, there for work, or you would miss out on getting your ticket otherwise, then sure, why not. If however you want to avoid any greater tax complications, then you might want to just stick to buying in-state. Your lottery company would prefer it that way too. This entry was posted in Lottery Systems. 7 Responses to “What Happens If You Buy A Lottery Ticket In Another State? 10 from the Mega Millions in Georgia but live in Iowa. Is there a way to claim this prize?
We already live in a state in which we can collect anonymously, but I feel people would suspect if after a PB win in our state we all retired. The jackpot of the popular Powerball lottery is now its 3rd highest ever! Read our tips for winning this amazing prize! 4th Largest Jackpot in Lottery History Up for Grabs! Buy lottery tickets online to the biggest lotteries in the world offering huge jackpot prizes that you can win when you play online lottery. Buy official lotto tickets online for over 50 of the biggest lotteries around the globe offering huge jackpot prizes as listed above! Here’s how it works: You choose the lotteries you wish to play and purchase your tickets on our website. Our local office staff all over the world purchases tickets from official lottery retailers on your behalf and you see scanned copies of your tickets before the draw.
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