A new ad from New Hampshire Lottery implies that Massachusetts residents can avoid paying taxes on lottery winnings by purchasing their tickets in New Hampshire – which isn’t the case.
Enter stage left, our villain: The “tax shark” who knocks on her door to chomp its share of her jackpot.
The comedic spot reminds lottery players “how good they have it” in New Hampshire, the commission said in a press release announcing the ad, “while poking a little friendly fun at its neighbor to the south.” A spokesperson for the Massachusetts Department of Revenue told NHPR that state’s residents “are subject to Massachusetts tax on all of their taxable income, regardless of the amount and where it’s earned.”
In Massachusetts, any lottery prize over $600 is taxed at 5%. If someone reports an income over $1 million, that triggers the additional 4% “fair share” tax, according to the Massachusetts tax officials.
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