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How much do I get?

Topic closed. 4 replies. Last post 11 years ago by Lottery_Analyst.

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United States
Member #9606
December 13, 2004
3 Posts
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Posted: July 28, 2005, 11:35 am - IP Logged

If I win the Texas Lottery $30 million jackpot on Saturday and have the cast option, how much cash do I get in the bank? I thought it would be something like $11-12 million with the taxes taken out up front. A friend of mine says, it would be more like $22-23 million and I would have to pay taxes on that of $7-8 million. What's the correct scenario?

Thanks!

 

 

 

    LANTERN's avatar - kilroy 28_173_reasonably_small.jpg
    Tx
    United States
    Member #4570
    May 4, 2004
    5180 Posts
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    Posted: July 28, 2005, 11:56 am - IP Logged

    No, you might get about $20, 000, 000 after they take the tax money away.

    BibleOnline  ParishesOnline  ChristianRadioOnline   MassOnline   Mass

    "Ten measures of beauty descended to the world, nine were taken by Jerusalem."

      Lottery_Analyst's avatar - Batman
      Georgia
      United States
      Member #1039
      January 15, 2003
      260 Posts
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      Posted: July 28, 2005, 12:28 pm - IP Logged

      ssupauqa,

      You were actually closer with your estimate.  The cash option is normally 55% to 60% of the annuity amount, which in this case would be around $18 Million.  ($30 million x60%)

      Then Federal tax would normally be around 38% of that.  ($18 million x62%)

      So you are looking at roughly $11.16 Million.

      Not sure if Texas has a city and state tax.  If so, you would need to deduct those as well.

      Also keep in mind that when you win they take taxes out up front but often times not enough, so you would possibly have to pay more at the end of the tax year, unless you invested wisely.

      My advice, see a CPA and Tax Attorney when you win.

      Good problem to have......I hope you win. Approve

      John - LA


        United States
        Member #379
        June 5, 2002
        11296 Posts
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        Posted: July 28, 2005, 12:32 pm - IP Logged

        LA:

        1) TX requires the cash/annuity choice when you PLAY;

        2) TX has no state income tax.

          Lottery_Analyst's avatar - Batman
          Georgia
          United States
          Member #1039
          January 15, 2003
          260 Posts
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          Posted: July 28, 2005, 1:48 pm - IP Logged

          Hi CASH,

          Thanks for the info.  I wish Georgia did not deduct a state tax.

          Thumbs Up

          LA - John