A Pennsylvania couple are winners of $121.6 million on a Powerball ticket purchased in Delaware in December.
Lottery officials did not disclose exactly where in the state the couple reside and said they wish to remain anonymous.
They matched all five white balls plus the red Powerball in the December 17 drawing, lottery officials said. The winning ticket was purchased in Selbyville, about 25 miles south of Rehoboth Beach.
The couple selected the $72.1 million cash option and collected their winnings, minus 25 percent tax, last month in Dover.
The man, who has been playing the Delaware Lottery since its inception in 1975, normally plays Powerball and Mega Millions when the jackpots get large, according to lottery officials. He has played the same numbers for several years.
The woman said she and her husband plan to make donations to schools and other charities. She said they travel a lot and have been thinking about purchasing an RV.
"Winning is not going to change me," the woman told lottery officials. "I told him I don't want us to be different because of the money. We are very blessed to win."
Winning in Delaware they were twice lucky.
This is what I do. Would rather pay a bit more in tax to remain anonymous
They're not going to escape Pennsylvania state taxes, if that's what you're implying. Pennsylvania now imposes a 3.07% state tax on lottery winnings, and because the couple live in PA, they will have to pay it.
It's Delaware state taxes anyways that they'll have to pay and its is more than PA
I meant because Delaware gives the option of staying anonymous.
I thought the state where it was bought gets the first tax bite?
Correct! Even though Delaware withholds NO state taxes at time of payout, they still have state taxes due, which I believe are 6.6%. So the PA residents will pay 3.07% to Pennsylvania, and 3.53% to Delaware.
But why the tax to Delaware if Delaware doesn't impose state taxes according to usamega.com?
Unless these folks are multimillionaires to begin with, they have won more than they could have imagined. l say take all the necessary taxes out & then leave me alone.Let me forge my own destiny.
The notes on the page clearly say why. Because the analysis shows what is withheld at the time of payout. It is impossible to know exactly what the final tax bill will be. Even my comment above where I provided the tax rates will not be their final tax bill. It will likely be less than that -- but it is impossible to know how much less.
It is not evident from the notes why Delaware would suddenly withhold taxes while at the same time not having a state tax on the lottery. Clearly they are not withholding federal taxes either. I did not ask what the final tax bill was.
So, Delaware does not tax lottery wins unless it taxes lottery wins. Cool beans.
Smart ! Buying tix in Delaware and remaining anonymous.
Take note here, the ticket was bought in Selbyville...closer to the Maryland border in lower-slower Delaware.
About as far away from PA. as you can get in Delaware !
Delaware does not have a lottery tax...it taxes lottery winnings as regular income, from 2.2% to 6.6 %
yea, big $ is going to put you in the 6.6% bracket as Todd mentioned above.
Also, some states don't tax lotto winnings for their own state lottery, but if you win in another state, you will owe tax (assuming you spend 184 days residing in the home state). An example if is you bought and won a large jackpot in Arizona, but resided in California. After you pay the top bracket in Arizona, anything above that until the top bracket in California, you would owe to the State of California. Many states have some agreements with neighboring states to give the amount paid already to a neighboring state as credit. While if you had won a California jackpot residing in California, you wouldn't pay state taxes on that jackpot.
I live in NJ and I play in DE solely because of the anonymity. When I lived in VA, I played in MD.
Congrats to the lucky winners.