how long would you wait to claim a powerball jackpot?Prev TopicNext Topic

• Rexer90

  

  LA Ca.
  United States
  Member #172,741
  February 3, 2016
  209 Posts
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  Yesterday, 4:57 pm

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  Don't forget that you don't get the $$$ right away if you claim the day after you win, it takes a while for all the States to pay in their share of the sales, plus other BS to deal with means you might not see the $$ for 6 weeks to three months after you claim.
• zeroleafclover

  

  TN
  United States
  Member #193,290
  October 25, 2018
  4 Posts
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  Today, 10:43 am

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  I am not a finance professional, nor play one on TV etc, so this is not advice.

  Imagine you won $100m. You've probably got between three and six months to make your claim. You're going to have a 37% federal tax bill due the year after you claim, so around $37m. Lotteries often deduct 24% federal taxes straight away at the time of the claim, so that's $24m paid at the time of the claim, so you will owe $13m, give or take.

  If you won on Jan 1st or May 1st, there's little point delaying that claim - you'll still have to claim this year, and pay the tax next year.

  If you won on Nov 1st or Dec 1st, you might choose to delay claiming until January next year, and then owe taxes the year after that. This means that $13m portion that will be paid as tax eventually can be banked or invested, accumulating interest/return for a whole extra tax year in YOUR account, not in Government coffers. Depending on that return, it could be more than chump change. And the bigger the win, the more this could matter.

  May the odds be ever in your favour
• Brock Lee

  

  us
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  May 4, 2023
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  Today, 12:49 pm

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  In response to Rexer90

  Quote: Originally posted by Rexer90 on Jul 20, 2026

  Don't forget that you don't get the $$$ right away if you claim the day after you win, it takes a while for all the States to pay in their share of the sales, plus other BS to deal with means you might not see the $$ for 6 weeks to three months after you claim.

  good point rexer. california seems to be one of those states that takes a long time to pay lottery winners. https://www.lotterypost.com/news/352455/7704818

  "don't believe everything you read on the internet." -- abraham lincoln

  "abraham lincoln is a liar." -- william shakespeare