Payout of winnings less than jackpot

Reply #8

Bagent — Wed, 09 Jan 2008 06:56:44 GMT

Coin Toss.... thanks for clearing that up. With so many different sets of rules and ways these things are handled, it is confusing. I can relax now and get excited about 5 + 0 wins now. Definately didn't want to see a 200K win pay out only 80-90 K.

Reply #7

Coin Toss — Tue, 08 Jan 2008 23:29:29 GMT

Bagent

No, only 5 + 1 prizes, the top jackpot, are reduced if the winners opts for cash instead of an annuity.

For the prizes under that (they're called lower tier) there is no option, it's thecash amount, and then taxed.

5 + 0 (no Powerball) is $200,000 pre-tax.

Reply #6

Bagent — Tue, 08 Jan 2008 21:54:19 GMT

OK, now I am confused. Is the 5 ball $200,000 win only available as the 30 yr annuity?

Justxploring...so to verify what I think you are saying, if I hit 5/5 with no powerball, they still withhold like they would a JP win. Basicly half off the top (since it is a cash option) and then the normal taxes that are for state and federal. So basicly, a $200,000 win would be like $80-90K once you get the money. Is that correct

Reply #5

Coin Toss — Tue, 08 Jan 2008 00:26:15 GMT

Justxploring

Coin Toss, Powerball is a 30 year annuity. (MM is 26) However, the annuity for PB is graduated. The first check is the smallest and then it will increase every year for 29 years.

Thanks, I wasn't sure.

I think that teaches us that every discussion we've ever had it about cash vs annuity should include the person's age

Reply #4

konane — Mon, 07 Jan 2008 17:48:12 GMT

Bagent welcome to LP, lots of good info to learn here!!!! Feel free to participate in Maddog10's Powerball and Mega Million Challenges in the jackpot games forum.

Reply #3

justxploring — Mon, 07 Jan 2008 17:40:11 GMT

Coin Toss, Powerball is a 30 year annuity. (MM is 26) However, the annuity for PB is graduated. The first check is the smallest and then it will increase every year for 29 years. The lower tier prizes are paid as a lump sum, less tax. Bagent, you wrote whatever tax they withhold which isn't entirely true. If you get 5/5, chances are you will still owe some money to the IRS. Most states only withhold 25%, but you will be in at least a 30% tax bracket, probably 35%. After you go to an acco... [ More ]

Reply #2

Bagent — Mon, 07 Jan 2008 16:58:29 GMT

Thanks Coin Toss - So correct me if I am wrong, but that is a cash payment of $200,000 minus whatever tax they withhold. Cool, that translates to a lot more $$$ than I originally thought.

Reply #1

Coin Toss — Mon, 07 Jan 2008 16:35:20 GMT

Bagent

The 59% reduction is for the top prize, hitting all 5 top numbers and the Powerball (bottom matrix).

If people take an annuity, the stated jackpot is paid over 20 years or so (maybe it's 26), if they want the prize in cash, right now, one payment, no annual payments the prize gets reduced by just about half or a little more.

The other prizes are right now , pre-tax cash.

5 white balls an no PB ( 5 + 0 ) would get you $200,000 pre-tax.

Payout of winnings less than jackpot

Bagent — Mon, 07 Jan 2008 10:47:40 GMT

I know this will be laughed at as one of the years silliest questions, but I have not been able to locate any info in this forum or elsewhere on the internet.

Taking the example of getting 5 white balls with no powerball, gives a winner $200,000.00. How is this normally paid out? Do you get lump sum (after taxes of course) Are these winnings treated like a JP win and you see 50% gone and then taxes off the remainder?

I know this sounds crazy to be asked with all the old hands here on