NY taxes bite

[David Abbott]

Hey, since I lack ovaries and sufficient melanin to
qualify for the WWTBAM to come, this question is
probably academic. However, to those of you who have
already appeared and have received your prizes, how much of
your winnings went to the great state of New York, and how
much to the fabulous Big Apple? Is there a fixed percentage
at play for each, or is it graduated? Does that reduce the
overall take to below 50%? I'm anticipating that it does.

Hey, I just remembered, I'm part Cherokee. Maybe that would
help!

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[Michael Feinberg]

None of our winnings go to New York state, NOR do they go to the City of
New York. Unless that's where you live.

-Mike

David Abbott <davejane...@acninc.net.invalid> wrote in article
<0ca0b8b7...@usw-ex0108-062.remarq.com>...

[mattma...@my-deja.com]

Different sources have said different things. For me, it's even more
complicated, as I'm a student living in NYC about 8 or 9 months of the
year, so NY may have some sort of a legitimate claim. My argument is
that it would work just like a national lottery or sweepstakes. For
instance, the Powerball drawing is held in one state, but your winnings
aren't "double-taxed." So, I wind up keeping just about half of the
winnings, after 10% went to charity.

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Before you buy.

[Tom Kosensky]

I think I read somewhere that John Carpenter's take-home after taxes and
such was $600,000 of the $1 million. I forget where I saw that, but I do
remember reading it.

T O M! :)
David Abbott <davejane...@acninc.net.invalid> wrote in message
news:0ca0b8b7...@usw-ex0108-062.remarq.com...

[David Abbott]

I'm surprised nothing was withheld for state or local tax.
J! nailed me for 7% California tax even though I am an Ohio
resident, Typically, a state is going to assert that income
earned within its borders is subject to tax there, and I
would have expected NYS and NYC to require Regis to be no
less assertive.

Although it worked out OK for me overall, as a result of my
J! appearances I had to file in 2 states and went through a
painful balancing act in each - lots of calculations and
obscure percentages.

A word to the wise - those greedy guys in Albany are apt to
make a play for your winnings. Better review your tax
position before you file.

[Brian]

In message <87lllb$50mk$1...@newssvr04-int.news.prodigy.com>, "Tom Kosensky"
<mryc...@prodigy.net> wrote:

> I think I read somewhere that John Carpenter's take-home after taxes and
> such was $600,000 of the $1 million. I forget where I saw that, but I
do
> remember reading it.

There was a feature in this past Sunday's NEW YORK TIMES (February 6) on
common mistakes made by (and good advice for) people who come into large
amounts of money, using recent game show contestants as examples. A sidebar
specifically covered the tax issues the winning contestants faced.

(You probably won't be able to read it for free by now, but it shouldn't
cost more than $2.50-$3.00 to access it from the archives at <www.nytimes.com>.)

BRIAN

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[JohnLaMantia]

> A word to the wise - those greedy guys in Albany are apt to
> make a play for your winnings. Better review your tax
> position before you file.

How true! After I won, I called the NY State Tax Dept and they told me
I should send in a tax payment.

Then someone posting on the ABC Millionaire board was kind enough
(well, he sort of took joy in that a lot of contestants had erroneously
sent NY a payment) to inform us about the 2/6 NY Times article that
dealt with tax consequences for Millionaire winners. I'd normally feel
gullible, but a bunch of other winners' accountants told them to do the
same thing.

I filed a zero return recently to get a full refund. Still, it made
sense for me to make a tax payment to take advantage of the federal tax
deduction since I was happily kicked into a higher tax bracket. I just
made it to the wrong state. IL has about half the income tax NY does.

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[Jenydevine]

I haven't heard of this.....are you saying that you only owe state tax to
Illinois (your state of residency/domicile), and NOT to New York state at all?

Could you elaborate a bit?

[David Abbott]

Wow. If that is the law in New York, it won't be for long.
Especially now that the Times has something in print. I'm
really surprised. So many game shows were New York-based in
the 50s and 60s! California is all over this money like
flies on a bucket of, uh, like, you know. (California
flies.)

[JohnLaMantia]

> I haven't heard of this.....are you saying that you only owe state
> tax to
> Illinois (your state of residency/domicile), and NOT to New York
> state at all?
> Could you elaborate a bit?

Yes, I now believe that I only owe IL who has a flat tax of 3% compared
to NY's progressive tax that can reach approx. 7%.