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taxes on jackpot winnings

Topic closed. 1 reply. Last post 4 years ago by RedStang.

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United States
Member #138296
January 24, 2013
28 Posts
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Posted: February 2, 2013, 1:29 pm - IP Logged

Win4 - 1:10,000 = $2600 (s/b 0.50/0.50)payout is 3.8 of odds;

Take5 - 1:575,757 = $50k payout is 11.5 of odds.

575757 / 10000 = 57.57

57.57 x $2600 = $150k. Which means Win4 pays x3 of Take5 for same odds.

However, if you hit 2nd place in Take5 and the prize is above $600, you pay taxes. Also, if you play all lines on single ticket, and the combined prizes go above $600 you pay taxes.

This happens during the buy $10 on single ticket get $3 QPs promo... which is why I dont like it.

Ifcourse, Win4 gives all lines on seperate tickets; if I win 10 lines of same numbers (4702) in a box, I win $100 x 10 = $1000 tax free.

Thus, if you want to avoid paying taxes on small winnings($600+), and $50k (after taxes = $31k) does nothing for you, avoid Take5.

Only the jackpot on Sweet Million is taxed (unless you win more than one 1st or 2nd place on single ticket). Best choice is to play SM and Take5 on seperate tickets.

Also, calculating long term odds of SM vs. Numbers, we see $1m after taxes = $620k.

$620k / $290(s/b) = 2138

2138 x 1000 = 2.1m; almost half of SM's 1:3.8m.

And 2nd prize pays $40 on 1:167 not SM's 1:456.

Thus, only PB and MM are worth playing in the long term if their jackpots are $150m+.

    RedStang's avatar - tallman zps6gf4inoc.jpg
    NY
    United States
    Member #121961
    January 21, 2012
    3157 Posts
    Offline
    Posted: February 2, 2013, 8:55 pm - IP Logged

    I wonder if you can claim losing tickets towards that Million before they make you pay taxes. They always say the winner is getting this much.