Welcome Guest
Log In | Register )
You last visited January 23, 2017, 5:30 am
All times shown are
Eastern Time (GMT-5:00)

I did not know that if you win 2nd place in the powerball drawing it is not really 1 million you win

Topic closed. 11 replies. Last post 3 years ago by shyguitar.

Page 1 of 1
51
PrintE-mailLink
Avatar

United States
Member #122468
February 1, 2012
530 Posts
Offline
Posted: August 7, 2013, 1:14 pm - IP Logged

Hi everyone,

Well today I was on my state lottery website and was looking at the past winners for the last six months or so. I came across a woman who won 1 million on the powerball drawing for winning the 2nd prize. The problem was it said that she took the lump sum and would get 700,000 (and less after taxes) are taken out. I was under the impression that it was an automatic payment of 1 million minus taxes if you won the PB and didn't play with the multiplier. Was I the only one who didn't realize that's how it's done. I didn't know the 2nd prize could even be an annuity, I always assumed it was just the onetime payment. I know that if you win 1 million dollars on a scratch ticket and decide to take it as a lump sum it's 650,000 minus the taxes so it comes to around 450,000 after taxes. Now I have always said that I would be thrilled to win any kind of a prize but really wish the lottery would make it more clear on how much it truly is. I've always been upset that when it comes to scratch tickets they never really tell you on the ticket that it's not a true 1 million dollar payout. I totally understand that we have to pay state and federal taxes on any winnings over 600 dollars but just wish all this time I had known about the actual money you could win if you come in 2nd on the PB. Is this is the same thing if you come in 2nd on MM? I know they say you get 250,000 on MM for coming in 2nd but if you take it as a lump sum is it less also? I'm sure most of you people already knew this so your probably thinking I'm just dumb for not knowing it but I really didn't know.

    maringoman's avatar - images q=tbn:ANd9GcTbRxpKQmOfcCoUqF2FyqIOAwDo7rg9G-lfJLAALPGWJWwiz19eRw
    Massachusetts
    United States
    Member #37433
    April 14, 2006
    2747 Posts
    Offline
    Posted: August 7, 2013, 4:37 pm - IP Logged

    Hi everyone,

    Well today I was on my state lottery website and was looking at the past winners for the last six months or so. I came across a woman who won 1 million on the powerball drawing for winning the 2nd prize. The problem was it said that she took the lump sum and would get 700,000 (and less after taxes) are taken out. I was under the impression that it was an automatic payment of 1 million minus taxes if you won the PB and didn't play with the multiplier. Was I the only one who didn't realize that's how it's done. I didn't know the 2nd prize could even be an annuity, I always assumed it was just the onetime payment. I know that if you win 1 million dollars on a scratch ticket and decide to take it as a lump sum it's 650,000 minus the taxes so it comes to around 450,000 after taxes. Now I have always said that I would be thrilled to win any kind of a prize but really wish the lottery would make it more clear on how much it truly is. I've always been upset that when it comes to scratch tickets they never really tell you on the ticket that it's not a true 1 million dollar payout. I totally understand that we have to pay state and federal taxes on any winnings over 600 dollars but just wish all this time I had known about the actual money you could win if you come in 2nd on the PB. Is this is the same thing if you come in 2nd on MM? I know they say you get 250,000 on MM for coming in 2nd but if you take it as a lump sum is it less also? I'm sure most of you people already knew this so your probably thinking I'm just dumb for not knowing it but I really didn't know.

    Naw shyguitar, the second and lower prizes in PB are paid in lumpsum so after taxes you get everything. If you match 5 of 5 you are supposed to receive $1M. The withholding taxes are 25% federal and 5% state to bring the total to 30%.

    30% of $1M is 300k. 

     Big Grin

    That money's gone fo ever

      dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
      Oklahoma
      United States
      Member #82391
      November 12, 2009
      6305 Posts
      Offline
      Posted: August 7, 2013, 4:59 pm - IP Logged

      Naw shyguitar, the second and lower prizes in PB are paid in lumpsum so after taxes you get everything. If you match 5 of 5 you are supposed to receive $1M. The withholding taxes are 25% federal and 5% state to bring the total to 30%.

      30% of $1M is 300k. 

       Big Grin

      Thumbs Up

      I Love Pink & Green 1908

        noise-gate's avatar - images q=tbn:ANd9GcR91HDs4UJhjxO7cmeMQWZ5lB_FOcMLOGicau4V74R45tDgPWrr
        Bay Area - California
        United States
        Member #136477
        December 12, 2012
        4146 Posts
        Offline
        Posted: August 7, 2013, 5:16 pm - IP Logged

        Hi everyone,

        Well today I was on my state lottery website and was looking at the past winners for the last six months or so. I came across a woman who won 1 million on the powerball drawing for winning the 2nd prize. The problem was it said that she took the lump sum and would get 700,000 (and less after taxes) are taken out. I was under the impression that it was an automatic payment of 1 million minus taxes if you won the PB and didn't play with the multiplier. Was I the only one who didn't realize that's how it's done. I didn't know the 2nd prize could even be an annuity, I always assumed it was just the onetime payment. I know that if you win 1 million dollars on a scratch ticket and decide to take it as a lump sum it's 650,000 minus the taxes so it comes to around 450,000 after taxes. Now I have always said that I would be thrilled to win any kind of a prize but really wish the lottery would make it more clear on how much it truly is. I've always been upset that when it comes to scratch tickets they never really tell you on the ticket that it's not a true 1 million dollar payout. I totally understand that we have to pay state and federal taxes on any winnings over 600 dollars but just wish all this time I had known about the actual money you could win if you come in 2nd on the PB. Is this is the same thing if you come in 2nd on MM? I know they say you get 250,000 on MM for coming in 2nd but if you take it as a lump sum is it less also? I'm sure most of you people already knew this so your probably thinking I'm just dumb for not knowing it but I really didn't know.

        You said it yourself- you were under the impression.Your impression played tricks on you.You cannot forget the Taxes when dealing with money old chap.
        The same is true for tonight's jackpot- if there is a winner, that person is not getting a check for $425 mil.

          Artist77's avatar - batman14

          United States
          Member #121745
          January 16, 2012
          4987 Posts
          Offline
          Posted: August 7, 2013, 7:46 pm - IP Logged

          I was perusing this forum while I was at work during lunch and almost choked when I saw this...I thought...no!!!!, My master plan and $ calculations to win 2nd place is messed up.  Glad to know it is a fixed amount. Whew!!!

          J'aime La France.


            United States
            Member #130815
            July 25, 2012
            1636 Posts
            Offline
            Posted: August 7, 2013, 8:06 pm - IP Logged

            Here in ole NC it's 32% tax...so you only get 680,000 after taxes on your lump payout....I dont know how they do the scratch-offs i assume it's the same

              savagegoose's avatar - ProfilePho
              adelaide sa
              Australia
              Member #37136
              April 11, 2006
              3316 Posts
              Offline
              Posted: August 7, 2013, 10:16 pm - IP Logged

              I was perusing this forum while I was at work during lunch and almost choked when I saw this...I thought...no!!!!, My master plan and $ calculations to win 2nd place is messed up.  Glad to know it is a fixed amount. Whew!!!

              its not fixed in Ca.  its parimutuel there, assuming only 1 Ca. player hit the 5 numbers they could win several mill, lthough if many many won it they might only get $500k check out the  Ca lotto site.

               

              this 2nd prize winner got $3 mill

               

              http://www.calottery.com/play/draw-games/powerball/winning-numbers/?DrawDate=Jul%2031,%202013&DrawNumber=33

              2014 = -1016; 2015= -1409; 2016  = -1171; 2017 = ?  TOT =  -3596

              keno historic = -2291 ; 2015= -603; 2016= -424; 2017 = ? TOT = - 3318

                Avatar

                United States
                Member #122468
                February 1, 2012
                530 Posts
                Offline
                Posted: August 8, 2013, 8:22 am - IP Logged

                Naw shyguitar, the second and lower prizes in PB are paid in lumpsum so after taxes you get everything. If you match 5 of 5 you are supposed to receive $1M. The withholding taxes are 25% federal and 5% state to bring the total to 30%.

                30% of $1M is 300k. 

                 Big Grin

                Hi maringoman,

                I know that there are taxes on the 1 million but the strange thing is when I saw this person's name and that she won 2nd prize in PB it said she start with 700,000 not 1 million, then taxes would be taken from the 700,000. I even called our states lottery headquarters and the woman was saying that if you take the amount in an annuity then you get the full 1 million (minus taxes) but if you take the lump sum you are starting with less than 1 million which was 700,000 then the taxes are minused from that. At least that is what the lottery woman was telling me. I totally understand we have federal and state taxes to play but from what I was told it didn't seem to be starting from 1 million. Still confused.

                  schmuckatelly's avatar - half planet.jpg
                  Jacksonville, Florida
                  United States
                  Member #140364
                  March 17, 2013
                  195 Posts
                  Offline
                  Posted: August 8, 2013, 11:18 am - IP Logged

                  Hi maringoman,

                  I know that there are taxes on the 1 million but the strange thing is when I saw this person's name and that she won 2nd prize in PB it said she start with 700,000 not 1 million, then taxes would be taken from the 700,000. I even called our states lottery headquarters and the woman was saying that if you take the amount in an annuity then you get the full 1 million (minus taxes) but if you take the lump sum you are starting with less than 1 million which was 700,000 then the taxes are minused from that. At least that is what the lottery woman was telling me. I totally understand we have federal and state taxes to play but from what I was told it didn't seem to be starting from 1 million. Still confused.

                  I think the lady was wrong.

                    Jon D's avatar - calotterylogo
                    Los Angeles, California
                    United States
                    Member #103813
                    January 5, 2011
                    1530 Posts
                    Offline
                    Posted: August 8, 2013, 12:06 pm - IP Logged

                    Hi maringoman,

                    I know that there are taxes on the 1 million but the strange thing is when I saw this person's name and that she won 2nd prize in PB it said she start with 700,000 not 1 million, then taxes would be taken from the 700,000. I even called our states lottery headquarters and the woman was saying that if you take the amount in an annuity then you get the full 1 million (minus taxes) but if you take the lump sum you are starting with less than 1 million which was 700,000 then the taxes are minused from that. At least that is what the lottery woman was telling me. I totally understand we have federal and state taxes to play but from what I was told it didn't seem to be starting from 1 million. Still confused.

                    The PB 2nd-9th prizes are fixed cash prizes, not annuitized.(and only in rare cases pari-mutuel)

                    I'm sure you misunderstood what was written on the website. Keep in mind, the 22yr old tekkie writing these articles is not the most expert in exact lottery and financial terminology, they got their script and just duplicate the marketing message.

                    Do you have a link or a quote? I just quickly persused the MA site, and saw this, is this it:

                    "May 29, 2013 Congratulations to Catherine Moriarty of Hyannis – she won a $1 million prize for matching the first five numbers (02-06-19-21-27) drawn in the Saturday, May 25 Powerball game. Moriarty, who is retired, received the prize in a one-time, lump sum payment of $700,000 (less taxes). She plans to use the winnings to undertake some home repairs and to invest the remaining funds."

                    That $700k is just minus the 30% taxes withheld initially, they are still responsible for the balance of taxes. Lump sum is just part of the script, doesn't mean there was ever an annuity option.

                    As for what you heard from customer service lady:

                    Your confusion probably confused her, so she gave you a confusing answer. I talked to lottery customer service before. Sounded like I called into DMV in da Hood! Rude people, yapping in the background. I wouldn't give any more credence to the exactness of their answer either.

                      Avatar
                      Kentucky
                      United States
                      Member #32652
                      February 14, 2006
                      7344 Posts
                      Offline
                      Posted: August 8, 2013, 1:07 pm - IP Logged

                      The PB 2nd-9th prizes are fixed cash prizes, not annuitized.(and only in rare cases pari-mutuel)

                      I'm sure you misunderstood what was written on the website. Keep in mind, the 22yr old tekkie writing these articles is not the most expert in exact lottery and financial terminology, they got their script and just duplicate the marketing message.

                      Do you have a link or a quote? I just quickly persused the MA site, and saw this, is this it:

                      "May 29, 2013 Congratulations to Catherine Moriarty of Hyannis – she won a $1 million prize for matching the first five numbers (02-06-19-21-27) drawn in the Saturday, May 25 Powerball game. Moriarty, who is retired, received the prize in a one-time, lump sum payment of $700,000 (less taxes). She plans to use the winnings to undertake some home repairs and to invest the remaining funds."

                      That $700k is just minus the 30% taxes withheld initially, they are still responsible for the balance of taxes. Lump sum is just part of the script, doesn't mean there was ever an annuity option.

                      As for what you heard from customer service lady:

                      Your confusion probably confused her, so she gave you a confusing answer. I talked to lottery customer service before. Sounded like I called into DMV in da Hood! Rude people, yapping in the background. I wouldn't give any more credence to the exactness of their answer either.

                      It looks like the lottery spokesman used the same terms they would use to describe a one time lump sum payment to jackpot player who took the cash value. The difference is the lump sum payment for a jackpot is opposed to multiple yearly payments of a larger amount. This example is simply saying the player won $1 million and will receive a check for $700,000 after taxes were deducted.

                        Avatar

                        United States
                        Member #122468
                        February 1, 2012
                        530 Posts
                        Offline
                        Posted: August 8, 2013, 1:51 pm - IP Logged

                        The PB 2nd-9th prizes are fixed cash prizes, not annuitized.(and only in rare cases pari-mutuel)

                        I'm sure you misunderstood what was written on the website. Keep in mind, the 22yr old tekkie writing these articles is not the most expert in exact lottery and financial terminology, they got their script and just duplicate the marketing message.

                        Do you have a link or a quote? I just quickly persused the MA site, and saw this, is this it:

                        "May 29, 2013 Congratulations to Catherine Moriarty of Hyannis – she won a $1 million prize for matching the first five numbers (02-06-19-21-27) drawn in the Saturday, May 25 Powerball game. Moriarty, who is retired, received the prize in a one-time, lump sum payment of $700,000 (less taxes). She plans to use the winnings to undertake some home repairs and to invest the remaining funds."

                        That $700k is just minus the 30% taxes withheld initially, they are still responsible for the balance of taxes. Lump sum is just part of the script, doesn't mean there was ever an annuity option.

                        As for what you heard from customer service lady:

                        Your confusion probably confused her, so she gave you a confusing answer. I talked to lottery customer service before. Sounded like I called into DMV in da Hood! Rude people, yapping in the background. I wouldn't give any more credence to the exactness of their answer either.

                        Hi Jon D,

                        You are correct about  the woman from Hyannis as to what I was referring to.  It was the way I was reading it may it seem like they meant that they were taking fed and state taxes out of 700,000 and not out of 1 million. Also the lottery lady made it also seem like what I had told her. Had she said that it's still 1 million just minus taxes being taken out (and of course taxes one has to when they do their taxes) then it would have cleared things up. Thanks. After you and another person tried explaining I will discount what the lottery person said.