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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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sully16's avatar - sharan
Ringleader
Michigan
United States
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October 28, 2009
40377 Posts
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Posted: January 10, 2016, 7:01 am - IP Logged

My sister in law is a bank teller, many cash advances on Friday....now what will these people do?

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"

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    Simpsonville
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    January 22, 2015
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    Posted: January 10, 2016, 7:01 am - IP Logged

    That is a lot of money. But question, why do all the news outlets keep saying whoever wins will win a billion or so dollars when they're really not? I mean I could see if this was another country where lottery winnings aren't taxed, but here in the good ol US they take almost half. Does anyone know how much the approx take home really would be based on where the cash option is now?

    Lottery guru says go to usamega.com and follow to Powerball or Mega Millions and it has the tax breakdowns for the different states.

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      Wyomissing, PA
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      Posted: January 10, 2016, 7:02 am - IP Logged

      Around $500 million, after taking cash option and Federal tax, in Pennsylvania and other states / jurisdictions that don't also tax lottery winnings.

      However, most states do tax winnings, such as New York, plus additional local taxes too for those in New York City. So the final amount can vary much as 20% depending on where one resides.

        ThatScaryChick's avatar - x1MqPuM
        Idaho
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        November 21, 2007
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        Posted: January 10, 2016, 7:04 am - IP Logged

        My sister in law is a bank teller, many cash advances on Friday....now what will these people do?

        Try to get another cash advance for the next drawing?  Crazy

        I only plan on buying 5 lines and calling it a day.

        "No one remembers the person who almost climbed the mountain, only the person who eventually gets to the top."

          MaximumMillions's avatar - Lottery-013.jpg

          Germany
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          March 8, 2015
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          Posted: January 10, 2016, 7:04 am - IP Logged

          I, too, went to bed before the drawing to keep dreaming. I was seriously thinking it would have been won. oh well chubby Hawaiian man, you can still do it! LOL

          I just hope thelotter goes online again some point i the next 3 days.

          Otherwise I'll be here asking for someone to buy and send me a ticket, preferably from an anon state, reimbursed through PayPal and good Karma.Green laugh

            sully16's avatar - sharan
            Ringleader
            Michigan
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            October 28, 2009
            40377 Posts
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            Posted: January 10, 2016, 7:06 am - IP Logged

            Try to get another cash advance for the next drawing?  Crazy

            I only plan on buying 5 lines and calling it a day.

            I had 20, but that cut into my 3 digit money....if I hit on the 3 digit I'll do the same.

            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"

              sirbrad's avatar - Lottery-062.jpg
              PA
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              Posted: January 10, 2016, 7:17 am - IP Logged

              It would take many days if not weeks to fill out that many bet slips, maybe months unless you had a lot of people doing it. Then it would take days to play them all even with a huge team playing them all over. Then you will have to split it with all those people unless they like working like fools for practically nothing to help you win a billion dollars which I doubt they would. So in the end it is just not worth. You would need like $60 million bet slips to play 5 rows lol. Good luck with that. Then if there are 5 winners you are REALLY screwed. If I had $600 millions or more already I would not even be thinking about spending that on the PB except maybe a few hundred dollars.

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                Wyomissing, PA
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                Posted: January 10, 2016, 7:17 am - IP Logged

                Lottery guru says go to usamega.com and follow to Powerball or Mega Millions and it has the tax breakdowns for the different states.

                It shows the approx payout at time of winning, but doesn't take into account the additional 14%+ a winner will likely owe the IRS. Lottery winnings is generally taxed as income. Currently, the highest tax bracket is 39.6%, which is what a jackpot winner would near certainly need to pay unless they utilize various accounting maneuvers that may reduce that.

                Yes, at the bottom of that page, this is explained, but not shown in the numbers, which is unfortunate leading one to believe the tax burden is far less than it really is. For example, in PA, the actual tax burden could be upwards of $100 million more leaving the winner, not with $600+ million, but rather a tad under $500 million when all is done.

                  sirbrad's avatar - Lottery-062.jpg
                  PA
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                  Posted: January 10, 2016, 7:22 am - IP Logged

                  $500 million or a billion is all the same to me I could care less. I would never spend it all anyway, and I could make most of it back with interest if I wanted to. However we are talking annuity value which pays around a billion over 30 years not the cash option. You could take the annuity and not have to worry about investing all that cash or where you are going to put it all, and you will have huge checks every year. I would be set after one year for life, the rest would be all gravy. Look at those numbers. Crazy! Or you could risk taking it all and investing. Also the jackpot is usually more than the amount shown once won.

                   

                  State:

                  Pennsylvania

                  Drawing Date:  Wed, Jan 13, 2016
                  Jackpot:$1,300,000,000
                  Federal Tax: 25%
                  State Tax:No state tax on lottery prizes
                  Report:Powerball annuity payout schedule (30 annual payments)

                   

                  YearGross PaymentFederal TaxesState TaxesNet Payment
                  1$19,566,866$4,891,716$0$14,675,149
                  2$20,545,209$5,136,302$0$15,408,907
                  3$21,572,469$5,393,117$0$16,179,352
                  4$22,651,093$5,662,773$0$16,988,320
                  5$23,783,647$5,945,912$0$17,837,735
                  6$24,972,830$6,243,207$0$18,729,622
                  7$26,221,472$6,555,368$0$19,666,104
                  8$27,532,545$6,883,136$0$20,649,409
                  9$28,909,173$7,227,293$0$21,681,879
                  10$30,354,631$7,588,658$0$22,765,973
                  11$31,872,363$7,968,091$0$23,904,272
                  12$33,465,981$8,366,495$0$25,099,485
                  13$35,139,280$8,784,820$0$26,354,460
                  14$36,896,244$9,224,061$0$27,672,183
                  15$38,741,056$9,685,264$0$29,055,792
                  16$40,678,109$10,169,527$0$30,508,582
                  17$42,712,014$10,678,003$0$32,034,010
                  18$44,847,615$11,211,904$0$33,635,711
                  19$47,089,995$11,772,499$0$35,317,496
                  20$49,444,495$12,361,124$0$37,083,371
                  21$51,916,719$12,979,180$0$38,937,540
                  22$54,512,556$13,628,139$0$40,884,417
                  23$57,238,184$14,309,546$0$42,928,638
                  24$60,100,092$15,025,023$0$45,075,069
                  25$63,105,097$15,776,274$0$47,328,822
                  26$66,260,353$16,565,088$0$49,695,264
                  27$69,573,370$17,393,343$0$52,180,028
                  28$73,052,038$18,263,009$0$54,789,028
                  29$76,704,640$19,176,160$0$57,528,480
                  30$80,539,872$20,134,968$0$60,404,904
                  Total$1,300,000,003$325,000,001$0$975,000,002

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                    New Member

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                    Posted: January 10, 2016, 7:27 am - IP Logged

                    something stinks

                     

                     did anyone see the ball picker for powerball ?  iT comes up from below   the ball doesn't get knocked off by other balls hitting it which tells me it is on a vacuum then The vacuum stick disappears below the bouncing balls (completely out of site)  with the money they have at there disposal how hard would it be to pull a magic trick.  not hard at all and they made it obvious.  to add insult to injury it is computer based what this means it gets the numbers first from quick picks, aunt patty's birthday numbers etc. Then with this obvious cheat machine can get the jack pot high to sucker in me:-( the saddest part is it can make sure in a nano second only one winner wins if it likes or the puppet master likes. a computer is a god among men! ran by a man.

                    but ya I am playing! the only chance for humanity

                      deborahl's avatar - lib
                      New Member
                      Medford
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                      February 15, 2011
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                      Posted: January 10, 2016, 7:30 am - IP Logged

                      When has America or anywhere else ever been 100% "safe"? I think for the most part people are just very self-centered and paranoid. Those who have issues are in the minority, you only hear about them because they are extreme cases and that is what makes news. All of those who won big that have had no issues are considered "boring" and not newsworthy. Nothing will stop me from living my dream. You can't let your "perceived fear" of what you "think" might happen stop you. Most who had problems were idiots to begin with, winning the lottery only made it all worse. If needed that kind of money can buy you a lot of security in many ways. After awhile though it will all die down and no one will care anymore. Just like it did with all the others. Most can't even name a past winner except one of the extreme bad cases such as Jack Whitaker. But even the general public does not even know him.

                      Anyone who is that worried and thinks that they cannot handle it, and that the world will then be after them 24/7 for the rest of their lives should not even bother playing. No one is going to force me to go into hiding. If you can't take the heat stay out of the lottery kitchen and let us who are prepared to live out our dreams play and win it. Or build yourself a "lottery bunker" and hide in it for the rest of your life. Doesn't sound like much fun though. Most of the "bad people" you need to worry about are family and friends, not strangers. Most have enough problems to worry about in their own life than tracking down a lottery winner. You might get a few here and there but again they are in the minority. But if you are like Jack and taking hundreds of thousands of dollars to a strip club then you are only asking for trouble. But the smart ones stay quiet and keep to themselves and have no issues. That is why all those big past winners are no longer in the news. They are "boring" and that is how they like it. Build a gun shop and live in it lol. But I am pretty sure you will get bored after awhile.

                      When has America or anywhere else ever been 100% "safe"? I think for the most part people are just very self-centered and paranoid. Those who have issues are in the minority, you only hear about them because they are extreme cases and that is what makes news. All of those who won big that have had no issues are considered "boring" and not newsworthy. Nothing will stop me from living my dream. You can't let your "perceived fear" of what you "think" might happen stop you....Anyone who is that worried and thinks that they cannot handle it, and that the world will then be after them 24/7 for the rest of their lives should not even bother playing. No one is going to force me to go into hiding. If you can't take the heat stay out of the lottery kitchen and let us who are prepared to live out our dreams play and win it. Or build yourself a "lottery bunker" and hide in it for the rest of your life. Doesn't sound like much fun though.
                      I may be wrong but are you saying that people shouldn't play just because they don't understand something?
                      My statement wasn't because I'm afraid. It is because some people don't comprehend the seriousness of the situation and will carelessly run around without thought of evil minds around them, be that family, friends, workers, or strangers. People have killed for a lot less. If your not aware then you cannot see the importance of protecting yourself. I mention it so hopefully a winner (maybe even a friend or family member) will come to this site and read this and think of something they may have not have thought of before. Perhaps it may make them a little more cautious. It may save a life or even change a life.
                      Are you one that would just go spend money carelessly, not aware of how desperate some people get especially if they precieve something bad has happened to them, and then they think it is because of you, "the lottery winner?"
                      Beware! Sometimes no matter how many warnings a person is given, they still don't realize or prepare for the dangers that are around them. Heck sometimes people just completely deny the issues or ignore them until it is painfully in their face. Some people feel as though they are invincible even though in reality they are less invincible because they missed a tiny (or major) detail.
                      Hey I say, spread the word! Help educate everyone who might not think things all the way through. After all your best thinking misinterpreted my message and you thought you were so right. Is it so far fetched to think someone might be so wildly excited about winning the lottery that they can't think straight enough to stay safe and even extend that safety to family and friends before it is too late?

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                        Posted: January 10, 2016, 7:31 am - IP Logged

                        That is a lot of money. But question, why do all the news outlets keep saying whoever wins will win a billion or so dollars when they're really not? I mean I could see if this was another country where lottery winnings aren't taxed, but here in the good ol US they take almost half. Does anyone know how much the approx take home really would be based on where the cash option is now?

                        You want to know the approximate amount you will take home based on the Cash Option now (just want to make sure we're on the same page)

                         

                        First of all, you don't know if you are going to be the ONLY winner. With large jackpots (and sometimes but rarely smaller jackpots) there are multiple winners.  A good example would be Marie Holmes who was one of three winners of a jackpot over $500 million.

                         

                        Next, you haven't provided enough information to get an the approximate amount you asked for.  Do you live in a state that has no lottery tax?  Some states tax you on your lottery winnings and others don't.  It varies from Zero to a state like New York where it's 8.82% (that's getting close to 10% of your Cash Option) Look at the left side of this webpage.  Look for USA MEGA, click on that then look at the bottom left under Powerball and click on Jackpot Analysis then scroll down to see what your tax rate is for your state.

                         

                        Next you gotta pay Uncle Sam his due. 39.6% is his take. That's 39.6% of your Cash Option. Yeah it can be reduced somewhat but that all depends on whether you get help from your CPA who knows what you can and cannot do to reduce that amount. The lottery will automatically take out 25% BEFORE they transfer your money to your bank. You are responsible to pay Uncle Sam the remaining taxes due.  When you go to USA MEGA and look at the Jackpot Analysis for the Wednesday's drawing you will see that they figure out how much you will get based on taking out the 25%. Therefore that number you will get is incorrect.  You will end up with less.

                         

                        The current Cash Option is $806 Million.  Assuming you are the only one who wins, do the math and you will see that you will walk with roughly half of that assuming you are the sole winner.  Makes sense because if you add 39.6 plus 8.82 you get almost 50%.  If you live in a state with no taxes then good for you!   $806M less 39.6% is $486.82M  For example: $806M times 8.82% is substantial, just over $71 million that goes to New York State. Use a spreadsheet program if you want to mess around with the numbers and do "What If" scenarios. 

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                          Wyomissing, PA
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                          Posted: January 10, 2016, 7:33 am - IP Logged

                          Federal tax rate isn't 25%, but rather much as 39.6%. Depending on what account maneuvers the winner is able to take, the actual amount could be low as $800 million or so. Still a bundle of money, but $800 million paid over 30 years isn't overly compelling when compared to $500 million after tax lump-sum.

                          The main advantage of an annuity is reducing tax liability, but when the numbers are as large as those you posted, it makes no meaningful difference. Many feel it's best to take all the cash now than hoping inflation stays under control and tax rates don't change. And it's not just Federal rates one has to be concerned about, but also state and local taxes, which can change / be added. For example, for a brief time, New Hampshire enacted a 10% surtax on lottery winnings, which also applied to past winnings being paid out in annuities.

                          In short, the reward verses risk isn't worth it these days for annuity, and is why most large jackpot winners opt for the cash option straight away.

                            sookie's avatar - nw femalewiz.jpg

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                            Posted: January 10, 2016, 7:45 am - IP Logged

                            I had an email at 4am from my mom saying I want a Powerball with you. Aww :).  So I'll be buying some with her. I think everyone knows I play every week

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                              Posted: January 10, 2016, 7:45 am - IP Logged

                              $500 million or a billion is all the same to me I could care less. I would never spend it all anyway, and I could make most of it back with interest if I wanted to. However we are talking annuity value which pays around a billion over 30 years not the cash option. You could take the annuity and not have to worry about investing all that cash or where you are going to put it all, and you will have huge checks every year. I would be set after one year for life, the rest would be all gravy. Look at those numbers. Crazy! Or you could risk taking it all and investing. Also the jackpot is usually more than the amount shown once won.

                               

                              State:

                              Pennsylvania

                              Drawing Date:  Wed, Jan 13, 2016
                              Jackpot:$1,300,000,000
                              Federal Tax: 25%
                              State Tax:No state tax on lottery prizes
                              Report:Powerball annuity payout schedule (30 annual payments)

                               

                              YearGross PaymentFederal TaxesState TaxesNet Payment
                              1$19,566,866$4,891,716$0$14,675,149
                              2$20,545,209$5,136,302$0$15,408,907
                              3$21,572,469$5,393,117$0$16,179,352
                              4$22,651,093$5,662,773$0$16,988,320
                              5$23,783,647$5,945,912$0$17,837,735
                              6$24,972,830$6,243,207$0$18,729,622
                              7$26,221,472$6,555,368$0$19,666,104
                              8$27,532,545$6,883,136$0$20,649,409
                              9$28,909,173$7,227,293$0$21,681,879
                              10$30,354,631$7,588,658$0$22,765,973
                              11$31,872,363$7,968,091$0$23,904,272
                              12$33,465,981$8,366,495$0$25,099,485
                              13$35,139,280$8,784,820$0$26,354,460
                              14$36,896,244$9,224,061$0$27,672,183
                              15$38,741,056$9,685,264$0$29,055,792
                              16$40,678,109$10,169,527$0$30,508,582
                              17$42,712,014$10,678,003$0$32,034,010
                              18$44,847,615$11,211,904$0$33,635,711
                              19$47,089,995$11,772,499$0$35,317,496
                              20$49,444,495$12,361,124$0$37,083,371
                              21$51,916,719$12,979,180$0$38,937,540
                              22$54,512,556$13,628,139$0$40,884,417
                              23$57,238,184$14,309,546$0$42,928,638
                              24$60,100,092$15,025,023$0$45,075,069
                              25$63,105,097$15,776,274$0$47,328,822
                              26$66,260,353$16,565,088$0$49,695,264
                              27$69,573,370$17,393,343$0$52,180,028
                              28$73,052,038$18,263,009$0$54,789,028
                              29$76,704,640$19,176,160$0$57,528,480
                              30$80,539,872$20,134,968$0$60,404,904
                              Total$1,300,000,003$325,000,001$0$975,000,002

                              When will people learn that the Federal Tax is NOT 25% when you're dealing with these large amounts.  sirbrad you gotta give Uncle Sam 39.6% but you could get that reduced somewhat assuming a number of things that your CPA (which you will easily be able to afford and you will most certainly need) can probably save you some percentage points but every person's situation varies.  So you may want to change your matrix of payouts to 39.6% rather than 25% because you will NOT receive 14.6% of what you think you will.  With huge numbers like that 14.6% becomes pretty significant.

                                 
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