|Posted: August 10, 2012, 6:51 pm - IP Logged|
I was on my state lottery website and compared the prize amount between two winners after taxes.one player who won 1mill on powerball received 683,000.00 after taxes.while another player who one 1 mill on the 1,000,000.00 jackpot only received 541,187 after taxes.what gives?
That same scenario is for pretty much for every state. In NH, we have a million dollar scratch ticket, which guarantees a $1 million payout as an
annuity over twenty years. ($50,0000 x 20 years).
If you want the lump sum however, they only give you $650,000 before taxes. So I guess the final total would depend on what state and federal
taxes your liable for. In NH we have no state tax, just the 25% federal (which may not be enough came tax time, may wind up being 35%).
The non-jackpot Powerball prizes are paid as a lump sum for the full winnings, less taxes. Which explains the discrepancy between the two prize
amounts in your state.