Welcome Guest
Log In | Register )
You last visited December 10, 2016, 5:13 pm
All times shown are
Eastern Time (GMT-5:00)

Kentucky lottery winner donates entire prize to college

Topic closed. 18 replies. Last post 11 years ago by cps10.

Page 2 of 2
PrintE-mailLink
Todd's avatar - Cylon 2.gif
Chief Bottle Washer
New Jersey
United States
Member #1
May 31, 2000
23277 Posts
Online
Posted: January 14, 2006, 7:09 am - IP Logged

You say that "the reduction in taxes doesn't mean much in terms of how much your winnings are reduced" but there is not just charity.  That can be one of the biggest things, but there are MANY other factors that can reduce taxes for SMART winners.

Note, I'm specifically talking about winners who consult with a tax attorney BEFORE claiming the prize.

It's important to note that many winners get a big chunk of the withholding back as a refund IF they get the good tax advice.  That is ignored so much by people who complain about about the withholding.  Not everyone has to make tons of charitable contributions in order to get refunds .... existing circumstances (medical bills, child deductions, mortgage payments, business expenses) often count for the bulk of the refunds.  But again, the importance of getting professional advice can't be stressed enough.

 

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

 

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

    Avatar
    Bethesda, Maryland
    United States
    Member #16901
    June 6, 2005
    446 Posts
    Offline
    Posted: January 14, 2006, 12:16 pm - IP Logged

    Understood, but the point being that the only reliable and always-correct number to give to people is the amount withheld by the lottery. 

    You'd be surprised how many people incorrectly say that the amounts on the Jackpot Analysis pages at USA Mega are wrong.  They say that the real amount is something like 39%, but they are not correct.  The amounts listed on those pages -- 25% Federal, plus whatever the states withhold -- are the correct numbers, and then naturally people have to pay more or less than that on April 15, depending on what they did with the prize money.

    Again, the point is that when people say the taxes on lottery prizes amount to 39%, that is wrong.  For some people it may be 39%, but making a blanket statement that it is 39% is wrong.

    HAPPY SATURDAY "TODD"

    I can appreciate your point.....especially as some States don't have an "income tax" such as Nevada.....

      Tenaj's avatar - michellea
      Charlotte NC
      United States
      Member #17406
      June 18, 2005
      4053 Posts
      Offline
      Posted: January 14, 2006, 8:25 pm - IP Logged

      angelm - you are right, seeing as I am from Louisville originally, and my dad went to school in Richmond @ EKU.

      Todd - yeah, it is a great story. I wish I could afford one day to do something like that for my high school or for Univ. of North Carolina (not like they don't have enough money as it is!)

      SmileyA building on the campus on UNC-Chapel Hill was built with public lottery money many many years ago and I forgot which one Yale or Princeton was started on public lottery money.

      takeemtothebank

        cps10's avatar - Lottery-004.jpg
        The Carolinas - Charlotte
        United States
        Member #21627
        September 12, 2005
        4138 Posts
        Offline
        Posted: January 16, 2006, 11:36 am - IP Logged

        Tenaj - which building was it? Might have been after I graduated ('90).