|Posted: August 15, 2003, 6:23 pm - IP Logged|
It depends on the state you are playing in as to whether the MM ticket is "purchased with the lump sum cash option". In Virginia, a MM (or LS) jackpot winner has 60 days from the day they submit the winning jackpot ticket to the lottery to choose whether they want cash option or annuity. Of course, since the lottery won't disburse a check until the choice is made, virutally every winner will make the choice at time of claim. But, theoretically, they could submit the claim and take the 60 days to make their decision.
As for the original question, the total amount of taxes withheld would depend on the state that the ticket is purchased in. Most of the MM ticket purchasing services buy their tickets in New Jersey because NJ does not tax lottery winnings on a state level, so only the federal tax is withheld. However, as to the total tax that actually ends up being paid, I would consult a CPA who has experience in foreign nationals and the US Tax Code.