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Winner Gets Fleeced

Topic closed. 13 replies. Last post 4 years ago by sully16.

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Nino224's avatar - Lottery-013.jpg
Miami
United States
Member #62793
July 9, 2008
669 Posts
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Posted: September 2, 2010, 5:14 am - IP Logged

One of the winners profiled in Lottery Changed My Life had won the big prize in the PCH sweepstakes.

They said she won $1,000,000, but that after taxes and fees her take home was actually $250,000.

Now, I know the taxes on that amount is around $350,000, which means she got nailed around $400,000 in fees. My question is what the hell kinda fees are those???

"...a chance to push everything aside, the circumstances that've controlled our lives, and do it our way now. Good, bad or otherwise. You'll maybe get lost in it, tied up in it a little bit, but if you work your way through that the real you shows up, I think. Maybe what's at your core deep down, maybe that comes out. Maybe that's what it's about." Mike Pace 

    johngreek's avatar - Lottery-023.jpg
    Patras,Achaia,Greece
    Greece
    Member #91331
    May 15, 2010
    42 Posts
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    Posted: September 2, 2010, 5:55 am - IP Logged

    its so bad that they tax your lottery like crazy in the usa.

    thank god you have huge jackpots so its less frustrating.

    the best is uk with zero tax in winnings and here as well not bad tax is only 15%

      Todd's avatar - Cylon 2.gif
      Chief Bottle Washer
      New Jersey
      United States
      Member #1
      May 31, 2000
      21581 Posts
      Online
      Posted: September 2, 2010, 7:52 am - IP Logged

      One of the winners profiled in Lottery Changed My Life had won the big prize in the PCH sweepstakes.

      They said she won $1,000,000, but that after taxes and fees her take home was actually $250,000.

      Now, I know the taxes on that amount is around $350,000, which means she got nailed around $400,000 in fees. My question is what the hell kinda fees are those???

      It was probably a cash option, just like a lottery, and the taxes on top of that.  PCH awards prizes over 20 years, not lump-sum.  That's how they're able to have $1 million prizes in the first place.

       

      Check the State Lottery Report Card
      What grade did your lottery earn?

       

      Sign the Petition for True Lottery Drawings
      Help eliminate computerized drawings!

        Hermanus104's avatar - 5027340606 1e360c8038_s.jpg
        Northern Virginia
        United States
        Member #83350
        December 5, 2009
        1229 Posts
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        Posted: September 2, 2010, 11:12 pm - IP Logged

        One of the winners profiled in Lottery Changed My Life had won the big prize in the PCH sweepstakes.

        They said she won $1,000,000, but that after taxes and fees her take home was actually $250,000.

        Now, I know the taxes on that amount is around $350,000, which means she got nailed around $400,000 in fees. My question is what the hell kinda fees are those???

        I think, then, that they should say that the top prize is $250,000; not $1 MILLION. I would rather they just give a smaller figure without taxes; giving the larger figure is misleading.

        Today's winning 3-ball is going to be a number between 000 and 999.

        In a lot of states, lotteries benefit education. That makes the REAL winners the only people who can't play!


          United States
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          Posted: September 2, 2010, 11:19 pm - IP Logged

          It was probably a cash option, just like a lottery, and the taxes on top of that.  PCH awards prizes over 20 years, not lump-sum.  That's how they're able to have $1 million prizes in the first place.

          I'm so glad you addressed this issue. I have many lottery layman friends who debate me on this, and I break down the options. But they just don't get it. A Lump sum decision not only includes regular taxation, but the winner is further "Penalized". The sacrifice  a winner must make in trading, is accepting a smaller percentage of the actual JP prize after taxes and the lump sum tax. It's the State taking away from you, what THEY would've made in interest on, in a 20 year time span.

          $10,000,000 JP win...

          40+% tax leaves 6,000,000..........or less...lol

          Another lump sum penalization of maybe 20%...(I don't know the numbers, just guessing)....leaves $4,800,000

          Still not bad.....I wish I had to deal with problems like that.

          I'll take it ! You won't hear any complaints from me. Not even a wisp of air leaving my lips...lol

           

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            New Member
            Toledo, OH
            United States
            Member #96928
            September 8, 2010
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            Posted: September 8, 2010, 3:15 pm - IP Logged

            It was probably a cash option, just like a lottery, and the taxes on top of that.  PCH awards prizes over 20 years, not lump-sum.  That's how they're able to have $1 million prizes in the first place.

            Thank you, that is pretty much the case. PCH awards prizes as an annuity, so there is the option of the 30 year pay out or a lump sum of the present day value of the annuity. That value varies due to market conditions. We took the cash option, and we're happy and debt free. :)

             

            GOOD LUCK!

            ~Natalie Bostelman

            2008 SuperPrize Winner

            PCH Goodwill Ambassador

              Todd's avatar - Cylon 2.gif
              Chief Bottle Washer
              New Jersey
              United States
              Member #1
              May 31, 2000
              21581 Posts
              Online
              Posted: September 8, 2010, 3:25 pm - IP Logged

              Thank you, that is pretty much the case. PCH awards prizes as an annuity, so there is the option of the 30 year pay out or a lump sum of the present day value of the annuity. That value varies due to market conditions. We took the cash option, and we're happy and debt free. :)

               

              GOOD LUCK!

              ~Natalie Bostelman

              2008 SuperPrize Winner

              PCH Goodwill Ambassador

              Natalie,

              Congratulations!  It's great to hear from you, I hope you enjoy that extra "boost" in the wallet!  (Do and buy some fun things -- but I'm sure you've got that covered!)

               

              Check the State Lottery Report Card
              What grade did your lottery earn?

               

              Sign the Petition for True Lottery Drawings
              Help eliminate computerized drawings!

                OwlCreekBridge's avatar - Lottery-031.jpg
                lottoville
                United States
                Member #95476
                August 11, 2010
                132 Posts
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                Posted: September 8, 2010, 3:42 pm - IP Logged

                Thank you, that is pretty much the case. PCH awards prizes as an annuity, so there is the option of the 30 year pay out or a lump sum of the present day value of the annuity. That value varies due to market conditions. We took the cash option, and we're happy and debt free. :)

                 

                GOOD LUCK!

                ~Natalie Bostelman

                2008 SuperPrize Winner

                PCH Goodwill Ambassador

                did you say, "holy toledo!" when you won? if not, you know you should have.

                  Avatar
                  New Member
                  Toledo, OH
                  United States
                  Member #96928
                  September 8, 2010
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                  Posted: September 8, 2010, 3:43 pm - IP Logged

                  Natalie,

                  Congratulations!  It's great to hear from you, I hope you enjoy that extra "boost" in the wallet!  (Do and buy some fun things -- but I'm sure you've got that covered!)

                  Thank you, Todd!

                   

                  I just happened to do a search and found your site, as my show is airing again tomorrow. We didn't go too crazy - just a few things here and there so that we could get the "WE WON!" out of our system, but we concentrated on paying off our debts (YES!!!), investing and building our dream home that my husband designed.

                  The win was a big blessing, especially since I was working three jobs right before the winfall happened.  I wouldn't change a thing. Now I have a little more free time and can volunteer more in my community.

                  Although, I now have a SECOND job as PCH's Goodwill Ambassador, so I can't seem to shake that "more than one job" thing ;) I am no longer eligible to enter while I am in this role, but I don't mind! I just helped the Prize Patrol deliver another check to a winner in Las Vegas on August 31st. It's nice to pass along the torch as it were.

                  @ OwlCreekBridge

                  HAH! I should have. I just fell down and screamed. You can see it on the TLC show or on Youtube. :) Funnily enough, Native Toledoans don't say Holy Toledo as much as you'd think we should.


                  GOOD LUCK!

                   

                  ~Natalie Bostelman

                  2008 SuperPrize Winner

                  PCH Goodwill Ambassador

                    OwlCreekBridge's avatar - Lottery-031.jpg
                    lottoville
                    United States
                    Member #95476
                    August 11, 2010
                    132 Posts
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                    Posted: September 8, 2010, 4:02 pm - IP Logged

                    Thank you, Todd!

                     

                    I just happened to do a search and found your site, as my show is airing again tomorrow. We didn't go too crazy - just a few things here and there so that we could get the "WE WON!" out of our system, but we concentrated on paying off our debts (YES!!!), investing and building our dream home that my husband designed.

                    The win was a big blessing, especially since I was working three jobs right before the winfall happened.  I wouldn't change a thing. Now I have a little more free time and can volunteer more in my community.

                    Although, I now have a SECOND job as PCH's Goodwill Ambassador, so I can't seem to shake that "more than one job" thing ;) I am no longer eligible to enter while I am in this role, but I don't mind! I just helped the Prize Patrol deliver another check to a winner in Las Vegas on August 31st. It's nice to pass along the torch as it were.

                    @ OwlCreekBridge

                    HAH! I should have. I just fell down and screamed. You can see it on the TLC show or on Youtube. :) Funnily enough, Native Toledoans don't say Holy Toledo as much as you'd think we should.


                    GOOD LUCK!

                     

                    ~Natalie Bostelman

                    2008 SuperPrize Winner

                    PCH Goodwill Ambassador

                    awesome story. thanks for sharing. I love to hear big win stories, I hope I have one to tell some day too

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                      New Member
                      Toledo, OH
                      United States
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                      September 8, 2010
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                      Posted: September 8, 2010, 4:07 pm - IP Logged

                      awesome story. thanks for sharing. I love to hear big win stories, I hope I have one to tell some day too

                      Thank you, I hope you all will have a story to share as well. :)

                       

                      GOOD LUCK!

                       

                      ~Natalie Bostelman

                      2008 SuperPrize Winner

                      PCH Goodwill Ambassador

                        OwlCreekBridge's avatar - Lottery-031.jpg
                        lottoville
                        United States
                        Member #95476
                        August 11, 2010
                        132 Posts
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                        Posted: September 8, 2010, 4:10 pm - IP Logged

                        Thank you, I hope you all will have a story to share as well. :)

                         

                        GOOD LUCK!

                         

                        ~Natalie Bostelman

                        2008 SuperPrize Winner

                        PCH Goodwill Ambassador

                        thanks Embarassed

                          johngreek's avatar - Lottery-023.jpg
                          Patras,Achaia,Greece
                          Greece
                          Member #91331
                          May 15, 2010
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                          Posted: September 8, 2010, 5:16 pm - IP Logged

                          congrats Natalie

                          good things happen to happy and positive people..

                            sully16's avatar - sharan
                            Listens to the wind
                            Michigan
                            United States
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                            October 28, 2009
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                            Posted: September 8, 2010, 7:26 pm - IP Logged

                            Congrats on your win.Cheers

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