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POWERBALL CREATES WORLD'S FIRST BILLION-DOLLAR JACKPOT

Topic closed. 567 replies. Last post 11 months ago by AbsolutelyFun.

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Posted: January 10, 2016, 8:03 pm - IP Logged

I vote for Mega Billions!Drum

Or Bountiful Billions is a better nameRazz

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    January 7, 2015
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    Posted: January 10, 2016, 8:06 pm - IP Logged

    If I'm a resident of a state with state tax but I buy my tickets in a tax free state do I still have to pay my state taxes?

    The thing to do, as I understand it, is to move to the no-lotto-tax state, where you purchased.


    Remember after you get and apartment (or whatever), to get your license, BANK ACCOUNT, credit cards need to be moved over.

    You will not need to stay where you are,  you will want to move, to lighten the tax burden "as much as possible".

    I am in the same situation. I first learned of the no tax state, where buy from, not too long ago.  But, when I did the math, and saw what my state was getting, in the event of a win. I said "NO WAY".

    After this win, I'm thinking you'll see a bunch of states making changes.

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      January 5, 2016
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      Posted: January 10, 2016, 8:11 pm - IP Logged

      If I'm a resident of a state with state tax but I buy my tickets in a tax free state do I still have to pay my state taxes?

      You pay the state where you bought the tickets at.  Someone who posted a bit earlier (like within 1 or 2 pages before) posted that some states have tax agreements.  I am not sure how that works exactly but it seems to exist from what the person posted. 

      But in general, you pay the state taxes in the state that you bought the tickets at because that is where you have to go to claim the jackpot assuming you haven't won smaller prizes.   Of course if you're claiming large sums of money then you need to go to the state's lottery headquarters to claim your prize.  For each state you simply go to their respective State Lottery Webpage and they have the rules written there OR they have the phone number you can call to get your questions answered.  Hope that helps.

        Arrowhead's avatar - underground
        Ohio
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        December 27, 2011
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        Posted: January 10, 2016, 8:20 pm - IP Logged

        ANNUITY

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          Member #171275
          January 5, 2016
          105 Posts
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          Posted: January 10, 2016, 8:21 pm - IP Logged

          The thing to do, as I understand it, is to move to the no-lotto-tax state, where you purchased.


          Remember after you get and apartment (or whatever), to get your license, BANK ACCOUNT, credit cards need to be moved over.

          You will not need to stay where you are,  you will want to move, to lighten the tax burden "as much as possible".

          I am in the same situation. I first learned of the no tax state, where buy from, not too long ago.  But, when I did the math, and saw what my state was getting, in the event of a win. I said "NO WAY".

          After this win, I'm thinking you'll see a bunch of states making changes.

          Is this even possible? I mean once you win and assuming you have friends and family who know you and that you've won then I would think that someone (maybe a not so good friend or a jealous relative) may call the lottery and let them know you moved after the jackpot was hit.  Besides the lottery will require identification and I am thinking that they will check as to when say for example your drivers license expires and knowing how long they issue licenses for they can back up the expiration date and realize that you got that license after the winning date.  I think you get the gist of what I'm asking, right?  I am thinking that if someone rats you out or they figure it out while you're claiming that the state you abandoned just to save the state taxes will have grounds to sue you for the taxes you avoided.  I believe (and I'm no lawyer) but tax avoidance is illegal.  So I believe you are risking going to jail not to mention the tax fines you would have to endure on top of having to pay the tax anyways.....not really worth it ya think?

           

          After all, I am thinking that the officials out there who work for the government whether county,state or federal don't really have very much leniency for a Powerball winner....right? I don't mean to say it's a bad idea but it's creative shall we say?

            realtorjim's avatar - images q=tbn:ANd9GcT7U3t20NgScoPlxOqLT6TR0vQeJNBV3_tTswe1XeFDTsdw3NLZ

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            Posted: January 10, 2016, 8:21 pm - IP Logged

            Yes, and I for one, as I've stated, would be more than happy with winning just a portion of the MM jackpot.

            Just one million samolians.

            Just one million leaves.

            Just one million Pesos.   ( a peso is a dollar, right?)

            Just one million Washingtons.

            The current value of a peso is approximately .056 cents (17.93 pesos equal a dollar).

              I'm feeling a jackpot win coming my way!

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              WA
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              January 9, 2016
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              Posted: January 10, 2016, 8:27 pm - IP Logged

              Unless you are already rich & famous, you have absolutely NO idea what it would be like to be the winner of something like this, probably esp. if sole winner...don't kid yourself, it would be far, FAR beyond what you could imagine!

              And I am not talking positives here in case you misunderstand lol :)

              You would have no private life, be followed, spied on, made a target....really, MUCH more than this, so while I can dream of all the good things I could do - give $500 million towards worthy causes, etc, and stll have many millions for family and self... I know it would be unlike ANYTHING most of us can even conceive.

              Don't fool yourself that you think you could handle it......maybe in an anon state, you stay hidden.....so, hmmm, should I play?, not sure (even tho I am very, very, very, VERY unlikely to have to deal with this, someone will have to.

                realtorjim's avatar - images q=tbn:ANd9GcT7U3t20NgScoPlxOqLT6TR0vQeJNBV3_tTswe1XeFDTsdw3NLZ

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                Posted: January 10, 2016, 8:28 pm - IP Logged

                Is this even possible? I mean once you win and assuming you have friends and family who know you and that you've won then I would think that someone (maybe a not so good friend or a jealous relative) may call the lottery and let them know you moved after the jackpot was hit.  Besides the lottery will require identification and I am thinking that they will check as to when say for example your drivers license expires and knowing how long they issue licenses for they can back up the expiration date and realize that you got that license after the winning date.  I think you get the gist of what I'm asking, right?  I am thinking that if someone rats you out or they figure it out while you're claiming that the state you abandoned just to save the state taxes will have grounds to sue you for the taxes you avoided.  I believe (and I'm no lawyer) but tax avoidance is illegal.  So I believe you are risking going to jail not to mention the tax fines you would have to endure on top of having to pay the tax anyways.....not really worth it ya think?

                 

                After all, I am thinking that the officials out there who work for the government whether county,state or federal don't really have very much leniency for a Powerball winner....right? I don't mean to say it's a bad idea but it's creative shall we say?

                You are spot on AbsolutelyFun, but some still seem to think they can move AFTER the draw but BEFORE the claim and thereby escape the state tax.  Wouldn't it be nice if it worked that way.  You can be assured, especially on the current jackpot amount, the taxmen, federal AND state, are going to make sure of your established residence at the time of the draw.

                  I'm feeling a jackpot win coming my way!

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                  Posted: January 10, 2016, 8:32 pm - IP Logged

                  You are spot on AbsolutelyFun, but some still seem to think they can move AFTER the draw but BEFORE the claim and thereby escape the state tax.  Wouldn't it be nice if it worked that way.  You can be assured, especially on the current jackpot amount, the taxmen, federal AND state, are going to make sure of your established residence at the time of the draw.

                  SmileThanks,much appreciated realtorjim!Cool

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                    Portland, OR
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                    August 20, 2013
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                    Posted: January 10, 2016, 8:33 pm - IP Logged

                    ANNUITY

                    ALL THE WAY!

                    "Understand... people are more complicated than the masks they wear in society... everyone is playing to win, and some people will use moral justifications to advance their side"

                                                                                                                                                                              Robert Greene

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                      Posted: January 10, 2016, 8:37 pm - IP Logged

                      ANNUITY

                      Just curious why you would choose annuity?  It's a personal choice of course.  With the current PB jackpot each annuity payment will still cap out at the maximum income tax rate, thus why not maximize the current 39.6%  rate currently in place (historically at a low) and not be subjected to a higher rate that will likely occur within the 29 year payout (1st immediate payment counts as year one).  Also, one must consider the taxes placed upon the entirety of the annuity value if one would die before it is paid out; taxes avoided if the cash value option is chosen.

                        I'm feeling a jackpot win coming my way!

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                        Lavender Rocket

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                        Posted: January 10, 2016, 8:44 pm - IP Logged

                        Just curious why you would choose annuity?  It's a personal choice of course.  With the current PB jackpot each annuity payment will still cap out at the maximum income tax rate, thus why not maximize the current 39.6%  rate currently in place (historically at a low) and not be subjected to a higher rate that will likely occur within the 29 year payout (1st immediate payment counts as year one).  Also, one must consider the taxes placed upon the entirety of the annuity value if one would die before it is paid out; taxes avoided if the cash value option is chosen.

                        yes!  I had gone back and forth re:  annuity (although my choice really did not matter as dh yells "CASH" in the background) - and the current low tax rate is what pushed me over (ok dh pushed me over ... just dont tell him).

                          JAMORA's avatar - ladyclover
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                          Posted: January 10, 2016, 8:49 pm - IP Logged

                          The jackpot is misleading as it doesn't exist beyond the $806 million cash payout....the remainder of the so-called $1.3 billion doesn't exist yet...if you take the annuity, they hold the majority of the existing cash prize and pay you interest on it over 30 years....might as well get the cash payout and invest it yourself...

                          "Don't waste time, it's the stuff life's made of..."

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                            Posted: January 10, 2016, 8:50 pm - IP Logged

                            Just curious why you would choose annuity?  It's a personal choice of course.  With the current PB jackpot each annuity payment will still cap out at the maximum income tax rate, thus why not maximize the current 39.6%  rate currently in place (historically at a low) and not be subjected to a higher rate that will likely occur within the 29 year payout (1st immediate payment counts as year one).  Also, one must consider the taxes placed upon the entirety of the annuity value if one would die before it is paid out; taxes avoided if the cash value option is chosen.

                            Yeah I've read so many very, very astute people's comments regarding taking the annuity and the downsides definitely outweigh the upsides.  Pretty much a no brainer now that everyone has both commented on LP and all over the internet as to the pitfalls of going with the annuity. 

                             

                            Seems the most popular argument FOR the annuity is that a winner will not be able to burn through all their cash which is totally WRONG!

                            I present good old Bud Post (May he rest in peace) who before winning was living on $340 Social Security a month then he won the $16.2 Million the Pennsylvania State Lottery and went crazy spending money and was already in debt by the end of the first year after winning.  Add to that he was sued by his friend/occasional girlfriend for not splitting the jackpot with her and he loss in court having to give her one third of future payments. Long story short, he ended up selling some of his future annuities to one of those companies that will give you a lump sum of money.  He promptly burned through all of that then he sold the rest of his future annuities and got a million dollars which he again promptly burned through in no time at all. Google his story, makes for interesting reading.

                            "Just say no to the annuity."

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                              mississippi
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                              Posted: January 10, 2016, 9:01 pm - IP Logged

                              QP have always outsold self picks. Personally I play QP sometimes, and sometimes I pick my numbers. Sometimes I use LP ' s RNG.

                              So I'm curious. If you are the only one on  the planet that can prove it's tampering, manipulation,and stealing, beyond any shadow of doubt, what's stopping you? If it's money, then you need to win PB or MM jackpot?

                              if I pursued this matter...the only thing you would be able to bet on would either be in Vegas or playing Bingo in Texas!!!!

                              "Attention all Mathematicians: Check your degree at the door because when it comes to whole numbers you are the Amateur"

                                 
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