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:: So you won the 'Big One'::

Topic closed. 17 replies. Last post 7 years ago by GYM RICE.

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Lucky4Life's avatar - batman14

United States
Member #85037
January 7, 2010
252 Posts
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Posted: January 31, 2010, 12:52 pm - IP Logged

I'm not sure where they get 28% taxes taken out.  They are citing florida lottery sources yet the florida lottery website states:

 

Q. What percentage in taxes will the Lottery withhold from my prize?
A. The Internal Revenue Service requires that the Florida Lottery withhold 25 percent federal withholding tax from prizes greater than $5,000 if the winner is a citizen or resident alien of the U.S. with a Social Security number. The Florida Lottery is not required to withhold federal withholding taxes from prizes for $5,000 or less. If the prizewinner is a U.S. citizen or resident alien who does not have a Social Security number, the Florida Lottery is required to withhold 28 percent backup federal withholding tax from any prize of more than $600. For nonresident aliens, the Florida Lottery is required to withhold 30 percent federal withholding tax from all prize amounts. The Internal Revenue Service requires the Florida Lottery to report all winnings for $600 and above for U.S. citizens and resident aliens.
 

    United States
    Member #81843
    October 31, 2009
    856 Posts
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    Posted: January 31, 2010, 2:02 pm - IP Logged

    Lots of money can be lots of trouble. Let’s say you won tens of millions.

    Now the thinking seems to be to invest it wisely, to make it grow- you don’t want to lose it of course. But you already have an insane amount to begin with and building an even bigger empire becomes your new task in life. You will be looking for short term and long term tax situations, investment properties, and basically more stuff to look after.

     A good tax person is a must. You will have to protect yourself from unscrupulous people who will sue you because you have it to give. You will have to have enormous insurance policies and have your interests protected from lawsuits. How much is enough? I do not play the big jackpot games for the very reason that I do not need that much money. I don’t even need the interest on it. I wouldn’t mind a chunk in the bank, but making it bigger just is not something for this one who is long in the tooth. I would leave what’s left to some good cause or another, most likely a volunteer based group that is responsible to it’s values. That’s why I am for games that spread the wealth around more than fantastic amounts in one jackpot. And who gives a poop what the government takes, if you don’t know by now you should find out what they will take, ask your tax person. A good one like an E.A. knows the tax law and can give tax advice.

    I never look at the gross on a paycheck because the net is the only thing that puts bread on the table and a chicken in my pot. My tax person figures out the rest and it’s money well spent. Sweating about future tax liabilities is something I do not wish to entertain. If you have a financial empire expect to have full time people looking after it, or try to do it yourself with your free time.

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      NH
      United States
      Member #83352
      December 5, 2009
      223 Posts
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      Posted: February 1, 2010, 9:45 pm - IP Logged

      What are you saying: All the Politicians are Lawyers!

      I know not all Politicians are Lawyers but aren't all Judges Lawyers?