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powerball taxes?

Topic closed. 17 replies. Last post 1 year ago by billionaire2bee.

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kyokushin187's avatar - evildead2
cornwall,ct
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December 23, 2010
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Posted: December 11, 2012, 9:21 am - IP Logged

I'm a bit confused on the taxes and how it is calculated for 5+0 w/ pp(2,000,000.00). Here in ct the taxes are 25% and another 6.7%.now by my calculations on a 2 mil win minus those taxes the payout after taxes should be $1,399,500.00. But i noticed that the ct winner who won the 5+0 w/pp p(2mill) their take home payout was $1,366,001.00.i called the ct lottery office but the guy that answered the phone kind of just brushed it off as i was calculating it wrong. I don't see how math is math. We had i 5+0 w/pp winner and two 5+0 w/o pp winners. Could that have had a reflection on the payout amount after taxes? What do you guys think?

Kyokushin karate a.k.a.

" The strongest Karate"

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    NY
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    October 16, 2005
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    Posted: December 11, 2012, 11:36 am - IP Logged

    The guy you talked to is right. Your math is wrong.

      HoLeeKau's avatar - YheaShea
      Boise, ID
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      July 17, 2010
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      Posted: December 11, 2012, 12:44 pm - IP Logged

      I like the Turbo Tax Caster.

       

      You don't need to fill in most of it to get a close estimate, just the 3 items on personal info, then your income from salary, then put the lottery winnings under Other Income.  Then click Continue and calculate your state tax and put that in under Other Tax Payments (the Uncle Sam Hat icon).

      The result will be how much you owe the Feds.  Add that number to the amount you calculated for state tax.  Now subtract that from the 2 million winnings and that's how much money you'll walk away with.

        HoLeeKau's avatar - YheaShea
        Boise, ID
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        Posted: December 11, 2012, 12:47 pm - IP Logged

        Just figured it for Idaho.  I'd owe the feds about $625K after the state tax is entered into the calculator.  The state tax is 160K (8%) for a total of $785K owed which would leave me with around 1.21 mil spendable after all taxes are paid.

          RJOh's avatar - chipmunk
          mid-Ohio
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          March 24, 2001
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          Posted: December 11, 2012, 1:18 pm - IP Logged

          I'll figure out the taxes if and when I win.  If I never then I won't.

          * Thoses who can, do * 
          * thoses who can't, just talk *
          Roll Eyes 


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            Posted: December 11, 2012, 1:26 pm - IP Logged

            I'll figure out the taxes if and when I win.  If I never then I won't.

            I don't know I'd like to have some idea of what I'm going to pay in taxes upfront...so's I can concentrate on what I get for myself...and how I'm going to spend, save, distribute that...depending on the amount won.....

              Original Bey's avatar - Lottery-022.jpg

              Bahamas
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              September 30, 2012
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              Posted: December 11, 2012, 1:32 pm - IP Logged

              I don't know I'd like to have some idea of what I'm going to pay in taxes upfront...so's I can concentrate on what I get for myself...and how I'm going to spend, save, distribute that...depending on the amount won.....

              You don't know IF you'll ever win, and even if you do, what game, what amount and what tax rates will be at that point in time. I think the exercise is futile. Focus all your energies and research and efforts on the WINNING part. You can hire and fire people to do that for you when you win. That's why you have those two weeks.

              "Everything works  ONCE!"


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                Posted: December 11, 2012, 1:41 pm - IP Logged

                You don't know IF you'll ever win, and even if you do, what game, what amount and what tax rates will be at that point in time. I think the exercise is futile. Focus all your energies and research and efforts on the WINNING part. You can hire and fire people to do that for you when you win. That's why you have those two weeks.

                That's not the point...I believe one day I am going to win and i like to think about what I'd do if i won.....I've never been a cross that bridge when I come to it kind of person...I like to have a of plan of action for everything I do or some idea in the least.......

                  kyokushin187's avatar - evildead2
                  cornwall,ct
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                  December 23, 2010
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                  Posted: December 11, 2012, 1:43 pm - IP Logged

                  That's not the point...I believe one day I am going to win and i like to think about what I'd do if i won.....I've never been a cross that bridge when I come to it kind of person...I like to have a of plan of action for everything I do or some idea in the least.......

                  I Agree!

                  Kyokushin karate a.k.a.

                  " The strongest Karate"


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                    Posted: December 11, 2012, 1:44 pm - IP Logged

                    I'm a bit confused on the taxes and how it is calculated for 5+0 w/ pp(2,000,000.00). Here in ct the taxes are 25% and another 6.7%.now by my calculations on a 2 mil win minus those taxes the payout after taxes should be $1,399,500.00. But i noticed that the ct winner who won the 5+0 w/pp p(2mill) their take home payout was $1,366,001.00.i called the ct lottery office but the guy that answered the phone kind of just brushed it off as i was calculating it wrong. I don't see how math is math. We had i 5+0 w/pp winner and two 5+0 w/o pp winners. Could that have had a reflection on the payout amount after taxes? What do you guys think?

                    Yeah I came up with the $1,366,001 too....Did you use 31.7% as the tax rate (25% + 6.7%)....

                      Original Bey's avatar - Lottery-022.jpg

                      Bahamas
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                      Posted: December 11, 2012, 1:46 pm - IP Logged

                      That's not the point...I believe one day I am going to win and i like to think about what I'd do if i won.....I've never been a cross that bridge when I come to it kind of person...I like to have a of plan of action for everything I do or some idea in the least.......

                      I understand your perspective, but how can you do any REAL planning with so many unknowns?

                       

                      I think most of us have figured out a rough plan of action but nothing detailed and to the dollar.

                       

                      I've done it by percentage: x% for savings x% for investments x% for real estate, etc.

                      "Everything works  ONCE!"


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                        Posted: December 11, 2012, 1:53 pm - IP Logged

                        I understand your perspective, but how can you do any REAL planning with so many unknowns?

                         

                        I think most of us have figured out a rough plan of action but nothing detailed and to the dollar.

                         

                        I've done it by percentage: x% for savings x% for investments x% for real estate, etc.

                        I mean it's not written in stone I just want SOME idea of where to go and what I want to do....Look at it like this:

                         

                        Havent you had days when you had so much to do you didn't know what you wanted to do first or what...What did you do? Did you maybe make a list of what you wanted to accomplish.....Things are easier to remember and prioritize when they are written down....Mine is just a rough idea of what i want to do if and when I win that's all....I want some course of action I can take and have some idea of it...

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                          Posted: December 11, 2012, 4:50 pm - IP Logged

                          So y'all are saying if you resided in Maryland, you wouldn't prefer to buy your ticket in Delaware, which allows anonymous claiming of prizes? That's something that you should only have to think about if, and at the time, you win isn't it? Would you prefer to buy your ticket in Pennsylvania, which allows claiming by any legal entity (including corporation) and has 0% state income tax on lottery winnings vs. Virginia, with a 4% rate and which forces you to take a photo and more than likely forces you to attend a press conference if you win (based on the language on their FAQ)?

                            kyokushin187's avatar - evildead2
                            cornwall,ct
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                            December 23, 2010
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                            Posted: December 11, 2012, 6:08 pm - IP Logged

                            Yeah I came up with the $1,366,001 too....Did you use 31.7% as the tax rate (25% + 6.7%)....

                            Thanks for the correction. I was incorrect. I didn't  add 25% and 6.7% percent together but subtracted them separate

                            Kyokushin karate a.k.a.

                            " The strongest Karate"


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                              Posted: December 11, 2012, 6:16 pm - IP Logged

                              Thanks for the correction. I was incorrect. I didn't  add 25% and 6.7% percent together but subtracted them separate

                              Good point though...... Why should you have to pay state tax on the portion that is federal tax????/

                              I mean after your pants have been pulled down by the feds, the state says "dont pull them up yet"??