Is it legal to purchase an out-of-state lottery ticket?
Question Details:
I am a HI resident and want to know if it is legal to own a season lottery ticket, ie Megamillions, purchased in another state? Would state taxes be taken out in the state where the ticket was purchased and/or the state that I reside in?
1) It is absolutely legal to own a lottery ticket from or purchased in another state. Lotteries have nothing to do with residency.
2) Generally speaking, you pay taxes in and to the state in which you reside. If you're a HI resident, you would therefore pay HI state income taxes on your earnings. (And of course, you'd also pay federal income tax.) Complicating the matter is that some states, like my own (NJ) have passed laws under which I believe they can add a surtax on any lottery winnings from tickets purchased in their borders. It would therefore, if you are lucky enough to win, be a good idea to check with an experienced tax preparer to fully understand your tax liability. Good luck!
