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Index/Topics/Residency and Domicile

Residency and Domicile

The state of residency and domicile can affect tax outcomes, with some states allowing annuity payments to be sold and others not. Winners may need to establish residency in a low- or no-tax state to minimize tax liability.

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Feb 3, 2026

How do state tax rules treat lump-sum versus annuity lottery payments?

of lottery payouts depends less on the payout form than on where the winner is taxed: a is reported and taxed all in the year received, while annuity payments are taxed as ordinary income in each year...