Question to people who won over $600? are prizes cut in half?

Reply #9

iGlenn — Thu, 19 Mar 2009 22:37:59 GMT

So how much did you win

Reply #8

SmoothJuice — Thu, 19 Mar 2009 07:50:30 GMT

Thanks for the help guys. I can sleep comfortably on my bed now.

Reply #7

justxploring — Tue, 17 Mar 2009 17:11:02 GMT

As others have answered, usually only jackpots have a lower cash value, since the advertised jackpot is based on the value of the annuity in 20 or 30 years. However, you always need to check the rules for each game. For example, PB has a second prize of $1 million and you win $1 million (less tax, of course.) But some of the scratch-off games in FL pay the second prize in installments, like the Billion Dollar Blockbuster game. The top prize is $10 million paid out in 20 installments, but the sec... [ More ]

Reply #6

OldSchoolPa — Tue, 17 Mar 2009 17:05:48 GMT

To answer your specific question, the answer is no and yes. Typically, Pick 5 and below games (Pick 4, Pick 3) are cash value games meaning whatever the advertised jackpot is the available cash winnings. Pick 6 games to include state lotteries, as well as Pick 5 + 1 games like MM and PB are advertised as annuitized jackpot games...meaning you only get that advertised amount if you choose the annuity option. The underlying cash value funding that annuity can range from 40 - 60% depending on the p... [ More ]

Reply #5

charmed7 — Tue, 17 Mar 2009 16:53:03 GMT

In MI, you receive the whole amount, U pay taxes on the money at the

end of the year, when u file your taxes. would nice if

we could throw in a bucket like this guy, and avoid taxes altogether!

(in my dreams

Reply #4

DC81 — Tue, 17 Mar 2009 16:44:57 GMT

I believe Mega Millions cash option has been around 65-70% over the last several months though thanks to the shorter annuity and how T-Bills were and are performing, but it's more because of the shorter annuity I think.

For example, let's say MM is up to 100M annuity and the cash option is 65,000,000, now the initial Fedral Tax would be 25% and whatever your state income tax is, Michigan for example has a state income tax of 4.35% so that's 29.35% off the top of the cash option if you take... [ More ]

Reply #3

Raven62 — Tue, 17 Mar 2009 13:31:29 GMT

Advertised Jackpot Game Prize Amounts are based on the Winner choosing the Annuity instead of Cash.

The Lottery acts as the Agent for the Winner if they Choose Annuity: They take the Cash Amount and Purchase an Annuity for the Advertised Jackpot Amount. (Time Value of Money) The Winner then Receives the Annuity and Pays Taxes Annually as they Receive the Annuity Payout.

If the Winner chooses Cash: They receive the Cash Amount minus Taxes. (Cash Amount is usually 50% of the Annuity Am... [ More ]

Reply #2

dopey7719 — Tue, 17 Mar 2009 09:47:15 GMT

It depends on the state you live in. In South Carolina, the federal government tax is 25% and our state tax is 7%. So it's whatever prize it is minus 32% for us. My cousin won 540.00 and ended up with a check for $367. You can always call your local lottery office and ask them the tax percentage. It's different in every state.

In SC, they automatically take out the state tax and for federal they let you chose to file it at the end of the year if it's less than 5000.00. Otherwise, they take i... [ More ]

Reply #1

rustysmom — Tue, 17 Mar 2009 07:56:41 GMT

In Ohio it's only the jackpot amounts on mega millions and classic lottery. the lower tier prizes are not affected.I won $1500.00 a couple years ago on the classic lottery. I received the whole amount.

on $5000.00 you would receive the $5000.00 and you pay the taxes when you file your income tax. over $5000.00 the tax would be taken out, but the amount would not be cut in half.

Question to people who won over $600? are prizes cut in half?

SmoothJuice — Tue, 17 Mar 2009 06:56:39 GMT

I have a question. Let's say that I win the Daily 4, Pick 5, state lottery or other big prizes. I know they're taxed, but are the prizes cut in half like in the Mega Millions and Powerball? I know the Ohio state lottery, their prizes are cut. Right now their state lottery prize is 16 million and it says prize is 50% of the amount .

Let's say I win Pick 4 (prize is $5,000).

Do they cut it in half , take out taxes and only give you $1,725?? Or do they take the $5,000, take out taxes and... [ More ]