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I tried to do a search on lottery PB tax.

Topic closed. 2 replies. Last post 11 years ago by Badger.

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United States
Member #23806
October 16, 2005
188 Posts
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Posted: February 16, 2006, 1:44 pm - IP Logged

So if the current Indiana Powerball is at $365,000,000. Why is the prize only worth 177.3 million? What other taxes do I have to pay? Im not understand.. my comprehesion and grammer are no good. Thats what I'm going to do with my lottery winnings.. go to English grammer school.

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    Morrison, IL
    United States
    Member #4657
    May 13, 2004
    1884 Posts
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    Posted: February 16, 2006, 2:54 pm - IP Logged

    $177.3 million is not the after tax value of the jackpot. It is the cash value option. The advertised amount, $365 million, is the total before tax amount you would receive if you took the annual payments, which are paid in 30 graduated installments, to adjust for inflation. $177.3 million is the amount the MUSL would have to invest to support the annuity payments if you took that option.

      Badger's avatar - adu50016 NorthAmericanBadger.jpg
      Wisconsin
      United States
      Member #1303
      March 27, 2003
      1508 Posts
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      Posted: February 16, 2006, 6:47 pm - IP Logged

      So if the current Indiana Powerball is at $365,000,000. Why is the prize only worth 177.3 million? What other taxes do I have to pay? Im not understand.. my comprehesion and grammer are no good. Thats what I'm going to do with my lottery winnings.. go to English grammer school.

      As mentioned, the 177.3 million is the cash option (if you don't want to take the annuity)

      Whatever one you take, expect the Federal government to take 40% of it. Depending on what state you live in, expect the state government to take their highest amount (here in Wisconsin they take 7%)

      Basically, whatever you win, subtract at least half from it, and that's what you get.

      ============

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      Answer: His lips are moving.