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New Jersey has allowed lottery winners to keep their names private since 2020, with anonymity applying by default unless a winner agrees to publicity. The protection covers public disclosure, while the Lottery and tax authorities still receive the winner’s information, according to SNJ Today.
What the New Jersey Lottery can disclose
Winners can choose whether to authorize the release of their name, town or photograph. Even when a winner stays anonymous, the Lottery may announce the winner’s county, the selling store and its town, the game, the drawing date and the prize amount.
A trust or limited liability company is not required to keep a winner’s name private in New Jersey. The Lottery, the IRS and the NJ Division of Taxation still receive identifying information.
Second-chance drawings and free giveaways are exceptions to the anonymity rules.
Claim deadlines and rules for multistate games
For draw games including Powerball, Mega Millions and Pick-6, winners have one year from the drawing date to claim a prize. Large prizes are claimed in person by appointment at Lottery headquarters in Lawrence Township, outside Trenton.
Powerball and Mega Millions prizes follow the claim rules of the state where the ticket was sold. A ticket purchased outside New Jersey is therefore subject to that state’s anonymity requirements.
Tax withholding still applies to private winners
The Lottery withholds 24% in federal tax on prizes over $5,000. New Jersey does not tax lottery prizes of $10,000 or less. For prizes above that threshold, state withholding is 5% on payouts up to $500,000 and 8% on payouts above $500,000.
SNJ Today gives the example of a $1 million prize paid in one lump sum: $240,000 would be withheld for federal tax and $80,000 for New Jersey tax, leaving $680,000 after those withholdings.
Back child support can also be withheld from lottery winnings before payment.
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Source: As reported by SNJ Today.