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First time player wins $5 million lottery jackpot
New Member  California United States Member #81456 October 7, 2009 13 Posts Offline |
| Posted: November 4, 2009, 4:54 pm - IP Logged |
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Wow the tax is painful to see, she should have played in the UK as $5m won would have been tax free, I guess us players in the UK are fortunate to have a game that offers no tax deduction, anyway congrats to her Buttercake,
no, the $5M is the lotto award over 20-26 years in payments. If you want all the cash upfront, then you typically divide by 2. After that you must take away US Federal Government (IRS) taxes, typically about 38%. After that, if the state taxes lotto winnings, you must take away state taxes, typically about 12%. New York taxes lotto winnings, California does not. This is why, to get a general idea how much someone wins in the USA, you divide the jackpot by 3 to get the cash payout after taxes. It's usually slightly more than that.
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charlotte, north carolina United States Member #65783 September 22, 2008 806 Posts Online |
| Posted: November 5, 2009, 8:20 am - IP Logged |
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WTG thats a good hit 
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New Member United Kingdom Member #71054 February 5, 2009 18 Posts Offline |
| Posted: November 6, 2009, 9:14 am - IP Logged |
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Buttercake,
no, the $5M is the lotto award over 20-26 years in payments. If you want all the cash upfront, then you typically divide by 2. After that you must take away US Federal Government (IRS) taxes, typically about 38%. After that, if the state taxes lotto winnings, you must take away state taxes, typically about 12%. New York taxes lotto winnings, California does not. This is why, to get a general idea how much someone wins in the USA, you divide the jackpot by 3 to get the cash payout after taxes. It's usually slightly more than that. I do understand that if she decides to keep the whole $5m it is paid over 20+ years in instalements, and how the $5m won gets divded, what I was saying is that over here in the UK if you win $5m, $10m or whatever amount, it is paid out in one lump sum tax free there is no options for it to be paid out in instalements, what you win is what you get, so you win $10m today you call up the lotto office go down to collect the cheque for $10m, plus the sooner you call up the lotto office the sooner ineerest is paid into your bank account for the $10m won
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Oath Keeper East Tennessee United States Member #74415 April 28, 2009 285 Posts Offline |
| Posted: November 6, 2009, 9:59 am - IP Logged |
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I do understand that if she decides to keep the whole $5m it is paid over 20+ years in instalements, and how the $5m won gets divded, what I was saying is that over here in the UK if you win $5m, $10m or whatever amount, it is paid out in one lump sum tax free there is no options for it to be paid out in instalements, what you win is what you get, so you win $10m today you call up the lotto office go down to collect the cheque for $10m, plus the sooner you call up the lotto office the sooner ineerest is paid into your bank account for the $10m won Hi buttercake,
Do you pay any kind of income tax on it at the end of the year or any tax whatsoever at any time? Somebody is going to win millions again. My chance is as good as the person who won last time. 
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Atlanta, GA United States Member #1288 March 13, 2003 2631 Posts Offline |
| Posted: November 6, 2009, 10:06 am - IP Logged |
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Congratulations!!!!!!! Way to go!!!!! 
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Philippines Member #71700 February 20, 2009 223 Posts Offline |
| Posted: November 7, 2009, 3:17 am - IP Logged |
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Congratulations "I firmly believe that any man's finest hour, the greatest fulfillment of all that he holds dear, is the moment when he has worked his heart out in a good cause and lies exhausted on the field of battle-victorious."
- Vince Lombardi
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Redwood City,California United States Member #71007 February 3, 2009 30 Posts Offline |
| Posted: November 8, 2009, 6:31 pm - IP Logged |
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That's $onemillion,eighthundred sixtyninethousand twohundred and sixtythree dollars.Better than NOTHING !
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United States Member #10921 January 23, 2005 863 Posts Offline |
| Posted: November 17, 2009, 9:01 pm - IP Logged |
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The $5M would be with the Lottery investing in whatever, so the 2.x with cash option, and then taxes.
The $2.8M or so is what the total sales are for this jackpot so far MINUS the takeout (what the Lottery
uses for their costs or Education etc.), and then out of that is about 1/3 in taxes. The $5M is the advertised
*annuity* jackpot meaning over years it's invested and paid out slowly so the remaining balance earns
interest. The rule of thumb is, whatever the Annuity prize is ("The jackpot is now....") take a 1/3 portion of
it, and that is the net prize cash option, or 2/3 for Annuity.
The ticket says QP after the numbers so it is in error they say she "picked" them. It was random.
I remember when the people won at Chubb in nj, I said "buy oil NOW!"... it was $40/bbl. then. Now $80.
They'd have doubled their money!!!
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