Shocking take home Lottery Winnings after taxes and fees you have heard of? O.OPrev Topic Next Topic

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Karen Nathan

Miami Florida
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July 13, 2018
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Nov 11, 2021, 4:01 pm

Jack Whittaker won the sole 315 Million Jackpot in 2002. He chose the Lump Sum.... And got 80 Million in take home Winnings. My mouth dropped open in shock at how LOW 80 Million seems from a Jackpot of 315 Million. Even for a Lump Sum. At least one Lottery News Watcher was like,"That's why I don't play the Lottery. Win 315 Million, get 80 Million in take home Winnings. 235 Million went to Taxes and Fees! Legal Highway Robbery!" A Poster replied, "It's because he chose the Lump Sum. Lump Sums have a LOT taken away for taxes and fees. Had he chose The Annuity, he would have gotten can lot more, but he'd get payments over 30 years. He was 55 when he won, so he probably wouldn't have survived to see the last Payment at 85. It was best he took the Lump Sum. On a side note, this Lottery News video was released a few years back. Jack passed away last year. So technically, him choosing the Lump Sum was best as the Poster surmised.

"What's your ADDRESS?" May be the CREEPIEST question EVER asked to a Lottery Winner! O.O WTF?

At first, I found the one digit away draws kind of amusing, but now I am PISSED! 15 or 16 times I was off by just one digit in recent times!🤬 No longer find this amusing, it's making me REALLY angry now!🤬
garyo1954

Texas
United States
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May 2, 2004
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Nov 11, 2021, 4:55 pm

Wiki has a different take......

"Whittaker already had a net worth of over $17 million before his windfall.^[4] On Christmas Eve 2002, Whittaker purchased the winning Quick Pick ticket at a supermarket in Hurricane, West Virginia, where he had stopped for a deli breakfast sandwich and to get fuel for his vehicle.^[5] He was not a regular lottery player but bought $100 in tickets because the jackpot was so high. He played the lottery only when it reached $100 million.^[3]

"The jackpot that Christmas Day (before taxes) was a $314.9 million annuity or $170.5 million cash. Whittaker chose the cash option of $113,386,407, after taxes.^[5]^[6]^[7]"(Google Jack Whittaker and click the Wiki link)

I'm probably here unless I'm not.
Dreaming would be a perfectly useless function if it's only purpose was to entertain.
Stack47

Kentucky
United States
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February 14, 2006
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Nov 11, 2021, 5:42 pm

Quote: Originally posted by Karen Nathan on Nov 11, 2021
Jack Whittaker won the sole 315 Million Jackpot in 2002. He chose the Lump Sum.... And got 80 Million in take home Winnings. My mouth dropped open in shock at how LOW 80 Million seems from a Jackpot of 315 Million. Even for a Lump Sum. At least one Lottery News Watcher was like,"That's why I don't play the Lottery. Win 315 Million, get 80 Million in take home Winnings. 235 Million went to Taxes and Fees! Legal Highway Robbery!" A Poster replied, "It's because he chose the Lump Sum. Lump Sums have a LOT taken away for taxes and fees. Had he chose The Annuity, he would have gotten can lot more, but he'd get payments over 30 years. He was 55 when he won, so he probably wouldn't have survived to see the last Payment at 85. It was best he took the Lump Sum. On a side note, this Lottery News video was released a few years back. Jack passed away last year. So technically, him choosing the Lump Sum was best as the Poster surmised.

After every PB and MM drawing USA Mega updates their current jackpot status including the cash value. For instance the before tax cash value of PB is $48 million less than the advertised "take payments over 29 years" jackpot. And according to Mega's jackpot analysis a West Virginia PB winner will net payoff of $70,660,928 after taxes or about 40.9% of the advertised jackpot. If the winner chooses the annuity, they'll net $98,822,820 after 30 payments.

I used WVA because that's where Jack Whittaker bought his $1 PB ticket and got a 25.4% net profit (80 million divided by 315 million) on his winnings. Can't count the number of LP posts talking about the advertised, cash, and after tax jackpot amounts so it's odd someone other than a rookie lottery player would call it "Legal Highway Robbery!".

If anything your argument seems to be in how jackpots are advertised.

"When will we ever learn?"
Stack47

Kentucky
United States
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February 14, 2006
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Nov 11, 2021, 5:48 pm

Quote: Originally posted by garyo1954 on Nov 11, 2021
Wiki has a different take......

"Whittaker already had a net worth of over $17 million before his windfall.^[4] On Christmas Eve 2002, Whittaker purchased the winning Quick Pick ticket at a supermarket in Hurricane, West Virginia, where he had stopped for a deli breakfast sandwich and to get fuel for his vehicle.^[5] He was not a regular lottery player but bought $100 in tickets because the jackpot was so high. He played the lottery only when it reached $100 million.^[3]

"The jackpot that Christmas Day (before taxes) was a $314.9 million annuity or $170.5 million cash. Whittaker chose the cash option of $113,386,407, after taxes.^[5]^[6]^[7]"(Google Jack Whittaker and click the Wiki link)

Your figure of $113,386,407 after taxes makes more sense than Karen's $80 million and changes the take home percentage to 36%.

"When will we ever learn?"
rdgrnr

100

The Hall Of The Mountain Kings Tennessee
United States
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April 28, 2009
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Nov 11, 2021, 6:39 pm

Sad to say but Jack and his family would have been much better off if someone else had won that particular jackpot.
ddude003

Missouri
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August 9, 2020
330 Posts
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Nov 11, 2021, 9:35 pm

Quote: Originally posted by Karen Nathan on Nov 11, 2021
Jack Whittaker won the sole 315 Million Jackpot in 2002. He chose the Lump Sum.... And got 80 Million in take home Winnings. My mouth dropped open in shock at how LOW 80 Million seems from a Jackpot of 315 Million. Even for a Lump Sum. At least one Lottery News Watcher was like,"That's why I don't play the Lottery. Win 315 Million, get 80 Million in take home Winnings. 235 Million went to Taxes and Fees! Legal Highway Robbery!" A Poster replied, "It's because he chose the Lump Sum. Lump Sums have a LOT taken away for taxes and fees. Had he chose The Annuity, he would have gotten can lot more, but he'd get payments over 30 years. He was 55 when he won, so he probably wouldn't have survived to see the last Payment at 85. It was best he took the Lump Sum. On a side note, this Lottery News video was released a few years back. Jack passed away last year. So technically, him choosing the Lump Sum was best as the Poster surmised.

What fees for where? Please be specific...
garyo1954

Texas
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May 2, 2004
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Nov 11, 2021, 10:06 pm

Quote: Originally posted by ddude003 on Nov 11, 2021
What fees for where? Please be specific...

Taxes.

Tomorrow's Mega is $53 million if you choose the annuity.
It's 38.5 million if you choose cash option.

The feds will automatically take 24% either way.
Since you'll only get $1,766,667 on the annuity the feds take $424,000 and you'll still owe $193,739 to make up the 37% tax difference.
If you take the cash option ($38.5 million), the feds take $9,240,000 and you owe $4,969,072 at the end of the year to make 37%.

Annuity banks $1,148,929.
Cash option banks $24,290,928.

Then the state gets their cut. Some states take 0, others (Maryland) take up to $3.4million in state taxes.

G

Click for calculator

I'm probably here unless I'm not.
Dreaming would be a perfectly useless function if it's only purpose was to entertain.
ddude003

Missouri
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August 9, 2020
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Nov 11, 2021, 11:01 pm

Quote: Originally posted by garyo1954 on Nov 11, 2021
Taxes.

Tomorrow's Mega is $53 million if you choose the annuity.
It's 38.5 million if you choose cash option.

The feds will automatically take 24% either way.
Since you'll only get $1,766,667 on the annuity the feds take $424,000 and you'll still owe $193,739 to make up the 37% tax difference.
If you take the cash option ($38.5 million), the feds take $9,240,000 and you owe $4,969,072 at the end of the year to make 37%.

Annuity banks $1,148,929.
Cash option banks $24,290,928.

Then the state gets their cut. Some states take 0, others (Maryland) take up to $3.4million in state taxes.

G

Click for calculator

Hey Gary, I get the state and fed taxes (those <snip>s)... I just don't get the "Fees" part...

This post has been automatically changed by the Lottery Post computer system to remove inappropriate content and/or spam.
KY Floyd

NY
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October 16, 2005
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Nov 12, 2021, 1:25 am

"I just don't get the "Fees" part..."

AFAIK, the only time a lottery winner has to pay fees is when they've won a lottery they didn't enter.
Karen Nathan

Miami Florida
United States
Member #191,036
July 13, 2018
545 Posts
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Nov 12, 2021, 2:20 am

Quote: Originally posted by garyo1954 on Nov 11, 2021
Wiki has a different take......

"Whittaker already had a net worth of over $17 million before his windfall.^[4] On Christmas Eve 2002, Whittaker purchased the winning Quick Pick ticket at a supermarket in Hurricane, West Virginia, where he had stopped for a deli breakfast sandwich and to get fuel for his vehicle.^[5] He was not a regular lottery player but bought $100 in tickets because the jackpot was so high. He played the lottery only when it reached $100 million.^[3]

"The jackpot that Christmas Day (before taxes) was a $314.9 million annuity or $170.5 million cash. Whittaker chose the cash option of $113,386,407, after taxes.^[5]^[6]^[7]"(Google Jack Whittaker and click the Wiki link)

Hmm. Roughly 113 Million sounds a lot better than 80 Million. The Lottery News I watched said the wrong amount then, only 80 Million when he actually won about 113 Million. I had a feeling that 80 Million was too low, but was going by what the Lottery News video said.

"What's your ADDRESS?" May be the CREEPIEST question EVER asked to a Lottery Winner! O.O WTF?

At first, I found the one digit away draws kind of amusing, but now I am PISSED! 15 or 16 times I was off by just one digit in recent times!🤬 No longer find this amusing, it's making me REALLY angry now!🤬
garyo1954

Texas
United States
Member #4,549
May 2, 2004
4,228 Posts
Offline

Nov 12, 2021, 12:22 pm

Quote: Originally posted by ddude003 on Nov 11, 2021
Hey Gary, I get the state and fed taxes (those <snip>s)... I just don't get the "Fees" part...

This post has been automatically changed by the Lottery Post computer system to remove inappropriate content and/or spam.

I ain't got a clue either.
Figure its one of those, "Don't believe everything you read or hear on the internet until you double check it."
No matter how many times its disproved, it still on the internet and people will still see and believe it.

G

I'm probably here unless I'm not.
Dreaming would be a perfectly useless function if it's only purpose was to entertain.
steve1863

Minneapolis
United States
Member #218,762
November 18, 2021
2 Posts
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Nov 18, 2021, 11:14 am

Jack Whittaker won the December 25, 2002 Powerball. He chose the lump sum, which according to Usamega was $170.5 million. The 315 million number is only theoretical; pay it no mind. Even if he held up a 315 million dollar check, that's not what he won.

His win was taxable income for 2002. At the time the highest marginal federal tax rate was 35%. While everyone's tax bill is different, the vast majority of Whittaker's win was taxed at this marginal rate.

West Virginia's highest marginal income tax rate was (and is) 6.5%.

170.5 X 35% = $59.675 million. 170.5 X 6.5% = $11.0825

59.675 + 11.0825 = $70.7575 million in tax.

170.5 - 70.7575 = $99.7425 million sticks.

Other factors can affect the bottom line, but this gets us close.
Karen Nathan

Miami Florida
United States
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July 13, 2018
545 Posts
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Dec 2, 2021, 7:07 am

To the Posters confused on why I said,"Fees," I actually meant "Federal Taxes." 😀

"What's your ADDRESS?" May be the CREEPIEST question EVER asked to a Lottery Winner! O.O WTF?

At first, I found the one digit away draws kind of amusing, but now I am PISSED! 15 or 16 times I was off by just one digit in recent times!🤬 No longer find this amusing, it's making me REALLY angry now!🤬
Stack47

Kentucky
United States
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February 14, 2006
10,302 Posts
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Dec 2, 2021, 3:23 pm

Quote: Originally posted by Karen Nathan on Dec 2, 2021
To the Posters confused on why I said,"Fees," I actually meant "Federal Taxes." 😀

"At first, I found the one digit away draws kind of amusing"

The Florida Lottery offers pick-3 front and back pair wagers and that would solve your problem.

"When will we ever learn?"

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Shocking take home Lottery Winnings after taxes and fees you have heard of? O.OPrev TopicNext Topic

Shocking take home Lottery Winnings after taxes and fees you have heard of? O.OPrev Topic Next Topic