money after cash value and taxes

Reply #14

dvdiva — Thu, 30 Jun 2005 06:14:22 GMT

Depends. In washington there is no income tax on the lottery or investments. CA may not get the cut on the lottery winnings but will from any investment made. Only problem with WA I have figured out is a very low winnings on the 2nd numbers if someone wheels in WA. Sales in WA are lower than any other state in Mega so a pari-mutuel prize would be really small if split 41 times.But than again cash is cash. I would much rather have 6% taken out of a big pot than not winning the pot at all.

Reply #13

visiondude — Thu, 30 Jun 2005 03:57:40 GMT

dumb question #1 ; will a person fare better tax wise in a state with no state tax on lottery winnings like california? or how about a state like georgia that grabs 6% state tax? for face value it seems a californian would fare better, but then there some tax idiosyncracies that i may not be aware of that would favor a player from georgia.i am talking about a lump sum after tax jackpot (mega millions).thanks, VISION

Reply #12

TheGameGrl — Wed, 29 Jun 2005 21:57:07 GMT

The minimum they will withhold on the tax is 25% prior to issueing the first installment or cash payout. Another poster on here was correct that 35% is the rate at which the jackpot will be federally taxed/due that year.The problem most people have is factoring in the state and local taxes since they vary by regions/counties. My state has tax exempt on state lottery winnings but my county is @ 1.7% so thats basically a total of 37% I'll owe the government if ever I win larger then 320,000 in any... [ More ]

Reply #11

Deadsantaclaus — Wed, 29 Jun 2005 21:56:07 GMT

. The current federal tax rates are 10% 15% 25% 28% 33% and 35%. The state of California have the following tax rates 1% 2% 4% 6% 8% 9.3% and 10.3%. As I understand it just because California withholds 25% for your federal taxes this doesn't get you off the hook for possibly up to another 10% of federal tax that your accountant will have to file as an estimated tax which will probably be done before the end of the current calendar year in say three payments.This is similar to what people who ow... [ More ]

Reply #10

Just6ntlc — Wed, 29 Jun 2005 21:20:07 GMT

So the federal tax withholding is 25% in California. If I should take cash value of $63 million for Friday's Mega Millions, what's the net amount I would have left after federal tax withholding [paid back to Uncle Sam]? What percent is federal tax withholding right now

Reply #9

CASH Only — Sun, 26 Jun 2005 16:35:53 GMT

Connecticut has yet to have a PB cash-option winner. This one better not blow it

Reply #8

dvdiva — Wed, 01 Jun 2005 19:47:31 GMT

Considering how much they want to raise taxes on everything in CA how long will that last

Reply #7

CASH Only — Wed, 01 Jun 2005 17:24:49 GMT

diva:I believe CA doesn't tax lottery winnings.

Reply #6

dvdiva — Wed, 01 Jun 2005 17:14:46 GMT

You can count on 35% being gone plus whatever the state income tax is. You should see a very good tax attorney but I doubt you will get any deductions. Trusts will just protect you from lawsuits more than being a tax haven.That's also why I shake my head in disgust at people whining that you are greedy if you wan a record jackpot. They have no clue how small that check will really be. This isn't euromillions where you get the check in cash and tax free. You can count on getting only 1/3 (in a ta... [ More ]

Reply #5

CASH Only — Wed, 01 Jun 2005 16:41:01 GMT

Federal withholding is currently 25%.

Reply #4

hypersoniq — Sat, 07 May 2005 14:00:49 GMT

Cash value of tonight's powerball is listed as 47.1 million. There is no rule of thumb formula to glean the cash from the annuity value as this gap can fluctuate with annuity interest rates. PB posts the cash value tho.Tonight's breakdown...Cash Value = $47,100,000.00Federal Tax Bill (@35 %) = $16,485,000.00You keep = $30,615,000.00State and local taxes vary (none for PA residents ;-) )here's the tricky part...MUSL tax withholding is only 27% = $12,717,000.00that means you owe uncle sam $3,76... [ More ]

Reply #3

SirMetro — Thu, 05 May 2005 21:36:21 GMT

I think the USA Mega site will actually break down what you get based on what state you live in. If not it, check the official Megamillions Web site.Sir Metro

Reply #2

weshar75 — Thu, 05 May 2005 21:27:39 GMT

They sure do take alot before you get your share of the jackpot

Reply #1

jim695 — Thu, 05 May 2005 20:52:19 GMT

It depends on the game. The cash option for the PowerBall game pays 55% of the advertised jackpot. State taxes will vary, of course, but you can count on paying around 30% in federal taxes.It's a little disheartening to watch your $83M windfall dwindle to a check worth less than half of what they'll say you won, but when the advertised jackpot reaches $80M or more, you can't get hurt if you use your head.The next PowerBall drawing is for $83M, so 55% of that comes to $45.65M. Figure 32% of the r... [ More ]

money after cash value and taxes

freddy827 — Thu, 05 May 2005 19:31:56 GMT

how do you find out exactly how much your taking home if you choose cash value option. Is it the jackpot divided by two then minus a 40% tax?So for the current powerball it would be 83/2 * .60 = 24.9 million, ack thats a much smaller number