Wouldn't they still have to pay taxes on the money given to them if they live in states with income taxes?I have wondered if one could move to a state without income taxes before they cashed in their winning ticket to avoid said taxes.Fwiw I once saw a lottery special. Iirc you can save a boatload in taxes by first forming some type of corporation and claiming the winnings through the corporation rather than as an individual.That said you'll in nothing (save a handful of $2 winners etc. The lottery is a tax on those who are bad at math.