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$321 MILLION: Mega Millions jackpot is red hot

Topic closed. 102 replies. Last post 2 years ago by AmoWin.

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Drenick1's avatar - villiarna
USA
United States
Member #152799
February 25, 2014
1090 Posts
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Posted: November 1, 2014, 9:31 pm - IP Logged

I respectfully disagree, why? For this singular reason. Should someone in California win....preferably me* -according to the California lottery it will take 6-8 weeks before l see that cheque. We talking close to Christmas here..nah, sorry..no way!

If that is the case wouldn't it be wise to wait until 2015 to claim the prize for tax purposes? Paying the additional Federal taxes in 2016 would be better than paying in April of 2015.


    United States
    Member #106134
    February 13, 2011
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    Posted: November 1, 2014, 9:48 pm - IP Logged

    Very good advice there, the less you can get away with giving to the greedy government, the better!

      whiteballz's avatar - Lottery-015.jpg
      Nutley, New Jersey
      United States
      Member #131058
      August 1, 2012
      875 Posts
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      Posted: November 1, 2014, 10:34 pm - IP Logged

      If that is the case wouldn't it be wise to wait until 2015 to claim the prize for tax purposes? Paying the additional Federal taxes in 2016 would be better than paying in April of 2015.

      I'd rather pay the taxes in April of 2015 than April of 2016. You'll be paying 39.6% on any income over $413,000 either way.

      Someone might say you could use the extra year to get some interest income but one year CD rates at the bank are so laughably low it isn't even worth it. Waiting the extra year also gives state politicians extra time to pass a new law to tax lottery winnings even more.

      New Jersey just dodged a tax bullet recently: http://www.lotterypost.com/news/282151

      I doubt this will be the last time a politician will propose a new law to tax lottery winnings more and next time the law might pass. It's not just NJ, most states would love the extra tax revenue. The last time NJ passed a new law to tax lottery winnings more was July 2009 and the tax was retroactive back to January 1 2009. So it didn't matter if you won before the law was passed, you'd still be taxed.

      "N.J. Lottery goes from zero to highest tax rate in the USA"

      http://www.lotterypost.com/news/196448

      I'd pay the taxes as soon as possible and move to a tax friendly state or tax friendly jurisdiction.

      .

        Marilyn222's avatar - thumb 350-286546.jpg
        Denver
        United States
        Member #117684
        October 12, 2011
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        Posted: November 1, 2014, 10:54 pm - IP Logged

        Is it fall back yet? I'm on time when I arrive there in the U.S. for the big MM JP...lolGreen laugh

        White Bounce

          music*'s avatar - nw bookeep.jpg
          Happy California
          United States
          Member #157856
          August 2, 2014
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          Posted: November 1, 2014, 11:32 pm - IP Logged

          Thank You Marilyn222 for the sweet reminder about setting our clocks back one hour. Saturday night before bed.

          Smiley Santa

            Marilyn222's avatar - thumb 350-286546.jpg
            Denver
            United States
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            October 12, 2011
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            Posted: November 1, 2014, 11:37 pm - IP Logged

            Thank You Marilyn222 for the sweet reminder about setting our clocks back one hour. Saturday night before bed.

            Smiley Santa

            YW...now let's win the MM JP!Smile

            White Bounce

              dpoly1's avatar - driver
              PA
              United States
              Member #66141
              October 16, 2008
              1672 Posts
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              Posted: November 1, 2014, 11:54 pm - IP Logged

              I have my ticket

              Party

              dpoly1 - Playing the lottery to save the jobs of those that build, transport, sell & maintain luxury items! -

               

              Eschew Poverty ........... Vote Conservative!

                mikeintexas's avatar - tx avatar-1.gif
                Texas Panhandle
                United States
                Member #136843
                December 20, 2012
                1269 Posts
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                Posted: November 2, 2014, 12:01 am - IP Logged

                If that is the case wouldn't it be wise to wait until 2015 to claim the prize for tax purposes? Paying the additional Federal taxes in 2016 would be better than paying in April of 2015.

                That's what I've always thought, but I've also wondered if the JP counts as income for the yr. when you claim it or when you won it?  If it's the latter, then I guess Uncle Sam will want the rest of his cut in just a few months.

                whiteballz: Someone might say you could use the extra year to get some interest income but one year CD rates at the bank are so laughably low it isn't even worth it. Waiting the extra year also gives state politicians extra time to pass a new law to tax lottery winnings even more.

                I guess I'm one of those "someones".  You're right about CD rates being laughably low, but I wouldn't agree w/ the "isn't even worth it" part.  Let's say the CV was 100 million (for simplicity's sake).  They'll take out 25%/25 million right away and you'll still have 14.6%/14.6 million to pay come tax time.  In this scenario, you'd have approx. 15 months until you had to pony up the rest.  Again, to simplify things, let's just call it a year (and also b/c of the CD term).   1-yr. jumbo CD rates are from 1-1.15% and once again, let's say 1% to simplify things.  1% of 14.6 million is 146,000 bucks. Since that figure will be added to the 14.6 million you'll owe, it too will be taxed at the highest rate, leaving you a little over 88k.  I suppose when you're talking a hundred million, that's not much in the grand scheme of things, but it will buy you a nice BMW or put in towards that pool or gourmet kitchen in your new home or for the A/V system for the man cave in your basement...or you can invest it again, maybe in something more risky that pays a lot more.    Even at .5% interest, it's still not chicken feed (unless you're like that chicken farmer who won a few months back and his winnings are going to allow him to keep his business)

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                  New Member

                  United Kingdom
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                  November 2, 2014
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                  Posted: November 2, 2014, 1:39 am - IP Logged

                  I really hope this one can get all the way to 1 billion!

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                    Posted: November 2, 2014, 1:48 am - IP Logged

                    You can use cash or accrual accounting for income taxes

                      noahwill's avatar - Lottery-023.jpg
                      Melbourne
                      Australia
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                      October 22, 2014
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                      Posted: November 2, 2014, 2:19 am - IP Logged

                      Interesting stats thanks! You think Mega Millions will beat its own jackpot record?

                        sully16's avatar - sharan
                        Ringleader
                        Michigan
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                        October 28, 2009
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                        Posted: November 2, 2014, 6:24 am - IP Logged

                        Yeah it's hot enough- time to take that baby out of the oven!

                        I agree

                        Did you exchange a walk on part in the war ?

                        For a lead role in a cage?

                         

                                                                    From Pink Floyd's " Wish you were here"

                          helpmewin's avatar - dandy
                          u$a
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                          February 22, 2011
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                          Posted: November 2, 2014, 7:38 am - IP Logged

                          $321 Go MegaHurray!Party

                          Let it Snow Snowman

                            CDanaT's avatar - tiger avatar_04_hd_pictures_169016.jpg
                            TX
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                            January 4, 2012
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                            Posted: November 2, 2014, 8:47 am - IP Logged

                            Thank You Marilyn222 for the sweet reminder about setting our clocks back one hour. Saturday night before bed.

                            Smiley Santa

                            Ohhhhhhhhhhhh  GREAT..now I gotta wait an extra hour  for the winning numbers to match my ticket numbers  on Tuesday Thud

                            Stay Positive, Believe and good things will come your way

                              hearsetrax's avatar - 0118

                              United States
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                              May 21, 2007
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                              Posted: November 2, 2014, 10:22 am - IP Logged

                              Ohhhhhhhhhhhh  GREAT..now I gotta wait an extra hour  for the winning numbers to match my ticket numbers  on Tuesday Thud