mega million ANNUITY

Reply #13

CASH Only — Fri, 05 Jul 2002 06:20:03 GMT

Whether it's $500,000 or $500 million, ALWAYS choose lump sum (here in NY you _still_ must choose when you PLAY).

Reply #12

EZMoney — Fri, 05 Jul 2002 04:08:01 GMT

there is no doubt you will be taxed to death if you hit the BIG ONE. how do you think we pay for all those bombs. but yeah taxes are incredible.

Reply #11

visiondude — Fri, 05 Jul 2002 03:53:31 GMT

all interested parties go to: (not you mr. happy, i know you don't believe you will ever win so it would be a waste for you (jk) www.biggamelottery.com/jackpot.htm this gives a breakdown state by state regarding the amount of the current jackpot and the net amount (less taxes) from each state in the big game/mega-millions. it gives net figure for the annuity (which we know that no one here will choose anyway) and the cash lump sum. that should answer your tax questions............v - dude... [ More ]

Reply #8

visiondude — Fri, 05 Jul 2002 03:42:42 GMT

that is brilliant, just how do you move in and out of conscienceousness so quickly. that is amazing. one minute you make no sense and then all of a sudden you are a walking medical miracle expounding the truths of lottery lore. i am not sure if i smell what you are cooking , but you are entertaining.........v - dude

Reply #9

visiondude — Fri, 05 Jul 2002 03:35:03 GMT

exactly right, let the big dogs eat just once. then you are a free man. let's say mr. happy is marginally right with some of his paint sniffing induced rambling's on were our economy and tax scenarios are headed. if you take the lump sum it is yours. if you didn't like they way our govt was going, you could go somewhere else with your money (another country). can't do that with an annuity, you are stuck. gives new meaning to take the $$$$ and run !!!........v - dude

Reply #7

MrHappy — Fri, 05 Jul 2002 03:32:19 GMT

It's definitely considered income. And 27% is the starting rate on lottery winnings of $5000+. If you win a $5000 from the lottery and make no additional income, the Fed will give most/all your money back because you are in the low tax bracked. If....I mean when, TheRock win his $500,000,000+ jackpot, he will have 27% Fed tax taken out before he even looks at his tickets to see if he has won. And because he would be in the max tax bracket, he would have to pay an additional 12% percent income ta... [ More ]

Reply #6

Mrcoolsoul — Fri, 05 Jul 2002 02:52:38 GMT

Receiving an annual check of a portion of the jackpot is, in the eyes of Uncle Sam, the same as making an income. Right? In that case they get to throw down a %27 fed tax every year you get your check and also the state, local and county get a share too(where applicable), whereas these entities only get to eat just ONCE when you choose the cash option. Am I right or am I right.

Reply #5

MrHappy — Fri, 05 Jul 2002 02:38:17 GMT

I think the max federal bracket is something like 39%. I'm pretty sure $1,000,000 per year would fall into that. State income taxes can range from 0% to 11% (at this moment). And there could even be county and city income taxes (if not today, sometime in the next 25 years). You may have your taxes raised big time for a 'Hillary' healthcare plan and Social Security type programs...and not qualify for them because you made too much money! I think those poor Enron and World.com Ex-CEOs can't get un... [ More ]

Reply #10

visiondude — Fri, 05 Jul 2002 02:06:39 GMT

to someone who makes let's say $45,000 a year, a annuity of a million or so every year sounds incredible. certainly if handled right it is all the money a person could ever need. you would have enough left over for your favorite charity (friends , relatives , charities and mr. happy). but that is not the point. it is a not a matter of greed, it is a matter of good economics. just three points alone do not make sense for an annuity. (1) you could be 18 years old and think that you have 26 years... [ More ]

Reply #4

EZMoney — Fri, 05 Jul 2002 01:48:24 GMT

you are taxed on whatever your payout annually is. example=$26M over 26 years =$1M a year -state and federal taxes. so for 26 years you clear about $700K/year, more or less depending on where you live.

Reply #3

Mrcoolsoul — Fri, 05 Jul 2002 01:31:34 GMT

I was thinking that the jackpot will get taxed once(right after it's won). With annuity, is there a %27 fed tax and also whatever the state tax is(where applicable) taxed every year for 26 years

Reply #2

EZMoney — Fri, 05 Jul 2002 01:26:47 GMT

exactly

Reply #1

MrHappy — Fri, 05 Jul 2002 01:17:47 GMT

Actually, taxes will almost certainly keep going up on the higher tax brackets. I find it unlikely that the top brackets tax cut sceduled 5 or 6 years from now will actually happen. Taxes will just keep going up for most people. I'm guessing that your $68,000,000 guess will actually end up being around $40,000,000 after 25 years of new tax rates. If you ever win more then $5,000,000, take the lump sum and run.

mega million ANNUITY

Mrcoolsoul — Fri, 05 Jul 2002 00:48:06 GMT

Friday's jackpot will be worth roughly $68 million after taxes......I dunno about you, but I think collecting a $2 and a half million dollar check every year for 26 years doesn't sound like a bad idea to me.