PERSONAL
INCOME TAX—Lottery winnings.
The Division of Taxation has issued Lottery Questions and
Answers concerning the personal income tax treatment of lottery
winnings as a result of L. 2009, A4102, (c. 69). New Jersey
lottery winnings from prizes exceeding $10,000 are taxable
for New Jersey gross income tax purposes, applicable to taxable
years beginning on or after January 1, 2009. New Jersey State
Lottery will withhold New Jersey income tax on taxable winnings
at the rate of 3%. All winnings from an out-of-state lottery
are taxable for New Jersey Gross Income Tax purposes, regardless
of the amount. Gambling losses may be used to offset gambling
winnings from the same year. Splitting and assigning lottery
proceeds is permitted under the New Jersey Lottery statutes
and is taxable to the recipient for prizes exceeding $10,000
for New Jersey income tax purposes, as appropriate and determined
for federal income tax purposes.
(New
Jersey Lottery Questions and Answers, 08/19/2009)
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