Saturday's PB Win

Reply #15

CA LotteryGuy — Tue, 30 Jan 2007 16:02:57 GMT

Cash Only...regarding the Federal tax rate, my comment is that if someone took the annuity, using current tax rates, for the first seven years the federal tax would be 33%. This is because in the current federal tax schedule the tax rate for income between $195k and $349k is 33%. The Powerball graduated payout schedule for a $15 million jackpot puts the payouts below $349k for the first seven years. Based upon the above the tax rate for the annuity is 33% for the first seven years and then 35... [ More ]

Reply #14

CASH Only — Tue, 30 Jan 2007 14:59:40 GMT

It sounds like the federal tax rate right now, according to you, is 35% if you take lump sum, but 33% for annuity. Better read it again.

Reply #13

ryanm — Tue, 30 Jan 2007 02:20:04 GMT

Heck, a $200,000 PB winner would probably generate a fair amount of local attention.

Reply #12

Guru101 — Mon, 29 Jan 2007 21:02:43 GMT

It depends on which state you live in. For example I live in Indiana, so this is how I would figure out how much the actual amount of a $15 Million jackpot would be if I chose the cash option($7 Million).

1. Figure out how much state tax is taken out, Indiana is 3.4%:

$7,000,000 * 0.034 = $238,000

2. Figure out how much federal tax is taken out(35%):

$7,000,000 * 0.35 = $2,450,000

3. Add them together:

$2,450,000 + $238,000 = $2,688,000

4. Subtract from cash option:

$7,... [ More ]

Reply #11

CA LotteryGuy — Mon, 29 Jan 2007 17:04:35 GMT

Some thoughts on this perfect jackpot:

Yes, there will be a lot less interest by the media for this winner versus the previous winner of $254 million in Missouri. However, the Arizona Lottery will still do its best to promote their winner and he/she should get a fair amount of attention locally.

Regarding the amount of winnings, here is what I came up with:

Annuity Option: After Federal taxes (based upon 2007 tax rates) of roughly 33% for the first 7 years an... [ More ]

Reply #10

JAG331 — Mon, 29 Jan 2007 15:45:58 GMT

I agree with the original post. This was a perfect jackpot hit. I'm sure most people won't even realize that it was hit again.

Not tough to duck the radar when you weren't even on the screen to begin with.

Reply #9

rundown99 — Mon, 29 Jan 2007 15:42:22 GMT

The only perfect jackpot hit is an anonymous jackpot hit.

Reply #8

Prob988 — Mon, 29 Jan 2007 15:36:31 GMT

This sounds like a formula for going broke, as so many lottery winners do.

It would be better to live an ordinary, comfortable, middle class existence on the interest, quietly.

Reply #7

Guru101 — Mon, 29 Jan 2007 04:55:38 GMT

The cash value is before taxes.

Reply #6

twisted — Mon, 29 Jan 2007 03:46:47 GMT

For Powerball the cash value is usually around 45-48% of the annuity. If you check the Powerball website right now you'll see that the cash value is only $7 million (46.7% of annuity). For the previous jackpot it was $7.1 million.

After taxes you'll have around half of the cash value (in most states). I live in a state that doesn't tax lottery winnings so if I won I would only pay federal tax on my winnings (Highest tax bracket: $97,653.00 plus 35% of anything over $336,550).... [ More ]

Reply #5

weshar75 — Mon, 29 Jan 2007 03:39:02 GMT

If you are talking about taking the annuity for 30 graduated annual payments. Then $15 million annuity is $7 million to $8 million over 30 years after taxes. But if you choose the cash option on a $15 million annuity prize the cash on hand is $7 million. After taxes it is going to be around $3.5 million roughly.-weshar75

Reply #4

guesser — Mon, 29 Jan 2007 03:06:11 GMT

'only $7 million before taxes.'

You sure about that ?

Taxes will take between 45 and 55%, so 7 or 8 million IS correct.

Reply #3

mangeydog — Mon, 29 Jan 2007 02:46:43 GMT

On a $15 million jackpot the cash value is only $7 million before taxes. Just thought you might want to recalcuate that posting. However, you are correct in that you would be in financially dire straits if you spent the money as the previous poster had suggested.

Reply #2

guesser — Sun, 28 Jan 2007 23:35:01 GMT

I guarantee you if I won 15 mill the LAST thing I'd do is buy a big house and rotate cars all the time, besides, if you take the cash, you are getting closer to 7 or 8 mill after taxes. That's enough.

Reply #1

ryanm — Sun, 28 Jan 2007 23:22:43 GMT

Yes, especially since the press will be all over the $254 million winner and off the $15 million winner.

Saturday's PB Win

golotto — Sun, 28 Jan 2007 20:45:17 GMT

Saturday's Powerball win in Arizona is the absolutely perfect Jackpot hit and congratulations to the lucky ticket holder.

15 Million Powerball jkpt (7M cash), is just what a person needs to retire, buy all the toys they desire, a big new home, (and why not a yellow Humvee every other year?) ... and spend the rest of their lives traveling to distant places around the globe.

Sure, it's fun to occasionally chase the wild and crazy stratospheric rollover levels, but as I have chanted before ..... [ More ]