|Posted: August 26, 2014, 12:33 am - IP Logged|
No matter what state you win in you are going to pay taxes. And both states will withhold a minimum 25% federal taxes. Some states withhold a state tax as well.
Can't find anything on the Lucky Millions game in Florida. The Florida Lottery website does list a Lucky Money game, similar to the Texas2Step. If you follow the link to how to claim your prize, it reads, under cash option, Florida offers a one time lump sum payout on the Florida Lottery, Powerball, MegaMillions and Lucky Money games.
That page also discusses federal tax withholdings. Nowhere does it mention 2/3 up front then pay taxes.
I am assuming what you are talking about is the difference between Annuities and Cash Value Option. In MegaMillions with a payout of $15 million, your annuity spread over 30 years would come to $375,000 yearly after taxes.
If you took the Cash Value Option on that amount it would be 8,900,000 and then you would pay taxes.
In Lucky Money where the prize is $500,000 you can choose a 25 year annuity, but WHY? Half mill spread over 25 years is $20,000 a year before taxes.
The Cash Value Option on $500,000 is $375,000 after 25% federal withholding.
The question is, is the CVO lower than the annuity payout on the Lucky Money game in Florida?
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