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why are prize amounts diff between scratch and 5+0 prizes?

Topic closed. 3 replies. Last post 4 years ago by mcginnin56.

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kyokushin187's avatar - evildead2
cornwall,ct
United States
Member #102636
December 23, 2010
245 Posts
Offline
Posted: August 10, 2012, 6:40 pm - IP Logged

I was on my state lottery website and compared the prize amount between two winners after taxes.one player who won 1mill on powerball received 683,000.00 after taxes.while another player who one 1 mill on  the 1,000,000.00 jackpot only received 541,187 after taxes.what gives?

Kyokushin karate a.k.a.

" The strongest Karate"


    United States
    Member #111442
    May 25, 2011
    6323 Posts
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    Posted: August 10, 2012, 6:51 pm - IP Logged

    I was on my state lottery website and compared the prize amount between two winners after taxes.one player who won 1mill on powerball received 683,000.00 after taxes.while another player who one 1 mill on  the 1,000,000.00 jackpot only received 541,187 after taxes.what gives?

    That same scenario is for pretty much for every state. In NH, we have a million dollar scratch ticket, which guarantees a  $1 million payout  as an

    annuity over twenty years. ($50,0000 x 20 years).

     

    If you want the lump sum however, they only give you $650,000 before taxes. So I guess the final total would depend on what state and federal

    taxes your liable for. In NH we have no state tax, just the 25% federal (which may not be enough came tax time, may wind up being 35%).

     

    The non-jackpot Powerball prizes are paid as a lump sum for the full winnings, less taxes. Which explains the discrepancy between the two prize

    amounts in your state.

      kyokushin187's avatar - evildead2
      cornwall,ct
      United States
      Member #102636
      December 23, 2010
      245 Posts
      Offline
      Posted: August 10, 2012, 7:03 pm - IP Logged

      That same scenario is for pretty much for every state. In NH, we have a million dollar scratch ticket, which guarantees a  $1 million payout  as an

      annuity over twenty years. ($50,0000 x 20 years).

       

      If you want the lump sum however, they only give you $650,000 before taxes. So I guess the final total would depend on what state and federal

      taxes your liable for. In NH we have no state tax, just the 25% federal (which may not be enough came tax time, may wind up being 35%).

       

      The non-jackpot Powerball prizes are paid as a lump sum for the full winnings, less taxes. Which explains the discrepancy between the two prize

      amounts in your state.

      Thnx mcginn.good luck sat night.

      Kyokushin karate a.k.a.

      " The strongest Karate"


        United States
        Member #111442
        May 25, 2011
        6323 Posts
        Offline
        Posted: August 10, 2012, 7:07 pm - IP Logged

        Thnx mcginn.good luck sat night.

        Hope I have good luck 2-nite as well (MM's).  Lep

        To you as well kyok, hope you snap up at least a 5+0 prize for a cool million (unless you Powerplay?, then it would double to $2 million).  BananaBanana