Lotteries: If you win mega millions in a state that taxes it, can you move to a state like Washington before claiming the prize to avoid state taxes?
No, but you can avoid lots of unforced errors by talking to experts and no one else before you sign the ticket or go public in any way. If you're planning on helping friends and relatives, this gets even more critical, but just the tax planning and asset protection stuff makes caution and patience mandatory.You have several months available to plan and set things up before needing to claim the prize. If 'no one' knows the prize winner, that winner could be a group with different percentage stakes based on the money they put into a pool. Some of those winners might be in no tax states and be able to enjoy that shield even if the ticket was bought in your state. A trust could hold the ticket and protect you from your own ignorance later (lol, but serious).Anyhow, if you win huge, the feds are taking the big bite. Yes, it's better to live in a Florida for example than in a lottery and income tax state, but you, or some winner in your pool, would actually need to reside there prior in any case.
How much will a $1.6 billion lottery winner get after all fees and tax?
Per CNBC, here’s a possible scenario:1,600,000,000-696,000,000 for taking the lump sum-217,000,000 federal withholding tax-117,500,000 addional federal income tax-79,700,000 potential state taxes if you live in a blue stateDRUM ROLL… $489,800,000Not to look a gift horse in the mouth, but… it does remind you that the biggest tax involved is the societal tax on the poor that is the root definition of the lottery system. Remember, government bureaucrats likely already profited $600 million off the top before taxes. And remember the demographics of who plays: across the board those in the lowest quartile of socioeconomic status and a large overrepresentation of many minority groups.See Here's the tax bite on $1.6 billion Mega Millions and $620 million Powerball jackpots
What would you do if you won the mega millions lottery this Tuesday?
For me I would buy a luxury condo in New York and Los Angeles that way I could live in both cities. Is would also buy a yacht. Iwould even put around 10 million in a cd account that way it will grow interest. Most likely this all a fantasy for me but hey you never know. Even though the odds are around 1 in 302 million its still fun to fantasize about.
If you won the lottery how much would you actually get?
A $113 million dollar jackpot means the person WILL get $113 million dollars, but ONLY if they took that jackpot over the course of 20 or 25 years as an ANNUITY. If the winner decides he wants ALL of the money up front as a "lump sum" payment, then he gets the CASH VALUE of that annuity. Typically, this means about 1/2 the posted jackpot. Lately, because of really low interest rates, it's about 55 - 60% of the cash value. In both scenarios described above, this has NOTHING to do with the taxes the winner will pay. Let's say they take the $113 million annuity. They will pay taxes each year according to their YEARLY income. Lottery winnings are taxed exactly the same way an any other form of income. Let's take the other scenario. A winner decides to take the "lump sum" payment. Let's say the "lump sum" of $113 million jackpot ends up being $82 million. (That fairly high because of interest rates. Much higher than normal. This is close to 73% of the posted jackpot!) They would then pay INCOME taxes on that $82 million just the same as if they were the CEO of a huge corporation and made $82 million in one year. They would likely take home somewhere around $55 million after taxes. ***MOST IMPORTANT - This is a complete waste of time. You could buy $50 worth of lottery tickets per week for the next 70 years. After all that spending on lottery tickets, you STILL would have, for all PRACTICAL purposes, ZERO chance of ever hitting any sort of lottery jackpot. It's not a "fun" truth, but it's the truth nonetheless.
If I win $200 million in the Powerball lottery, should I buy US Savings Bonds to avoid taxes?
Buying saving bonds wont save you taxes on the 200 million you won. Not even sure if the interest from the saving bonds are tax free. They are for California however. As for earning on the 200 million, tax free bonds are just one way to go. For example, if a taxable bond give you 8% and taxes will cost you 2%, you will keep 6%. If a tax free bond earns more than 6%, then you would go with a tax free. If a tax free was less than 6%, then you would go with taxable bonds. I am making up numbers as I dont think anything pays 6–8%. There are other variables, to take into consideration. Non Taxable bonds are usually guaranteed by a state, so unless you think the state is going to disappear, the investments is 100%. Taxable bonds are usually issue by corporations. Can a corporation go under. sure so no taxable is 100%. US government, T-Bill, Notes and SAvings Bonds are all taxable for federal purposes only. Since they are guaranteed by the US government, the are also guaranteed investments. In determining between Government and non taxable bonds, you would do the same calculation that I mentioned between taxable and non taxable bonds
If I win a jackpot of 55 million dollars in Texas how much will taxes take?
If you are referring to one of the “state lotteries” then you will be responsible for up to 37% in federal taxes. As this question is insufficient in its detail, it calls for many variables to be contended with ….Assuming you are playing a “state lottery” and are a resident of Texas and the advertised jackpot is $55 million, you have two options (1) take the lump sum, or (2) take the tiered annuity over 30 years*. You decided on the lump sum, which is approximately 60% of the advertised jackpot (this amount represents the amount of money earned by ticket sales that the state commission would invest in bonds in order to make the full lottery payments over time). Although 20–25% will be withheld automatically for federal taxes, this is not the full tax on your winnings. Like any other income, the lump sum will be reported on your federal income taxes and you will pay normal taxes on the total income. Having been awarded $33 million (60% of $55M), the federal income tax will be approximately $12.21M. One of the first things to do is make sure this full amount has been paid so you don’t come up short at filing time. $20,790,000 would be your net winnings.Assuming the same as above, but the lump sum is $55M then you would have an estimated tax payment of $20.35M. Your net winnings would be $34,650,000.If this question refers to any other type of jackpot (Vegas or other gambling) the second answer would normally apply if a lump sum is allowed. Many multi-million-dollar jackpots that are not “state lotteries” usually don’t give a lump sum option as the awarding agency makes money off the long-term investment as well.*For this answer I will focus on the lump sum, which is the better choice. The annuity with pay out the full $55 million over the 30 years, but the amounts start small and 2/3’s of the jackpot will be paid in the last 10 years; therefore, it really isn’t a good financial idea.
How much money do you actually get from the lottery?
How much do I get? Nothing. How much do you get? Nothing. People who win take home only about 35-40% of the advertised annuity value.
If i win a million dollars how much is left after taxes?
Well, if you decided on a lump sum payment (all at once), you get about half or a little more then the state takes about.. half of that or close? (their just jelous they didn't win) so about 400,000$ maybe.... try doing an internet search.. thats why I always wish to win 3 million, that way i will see at least 1 million afterwards.. you see what I mean?
If you won the $650 million+ Mega Millions jackpot would you take the lump sum or annual payments, and what would you do with your newfound wealth?
I would pick the annuity and I would keep working and living normally, because I like to work. :)I would have so many things to do with that money, but nothing extravagant.Things like..Buy a house for my parents (they live in my native Colombia). Buy a house for me. (3 bedroom house, nothing so big, because we don’t need it, in PA). Go ahead to enroll in the master that I want. Pay my husband’s student loan. I don’t have major debts but I would pay the minor debts that I have. I would buy a motorcycle (I;m doing that soon anyway) but I think I would keep the car that I have right now, at least for a while. Help some relatives and friends very smoothly, without letting them know that I’m super wealthy. Invest. Throw every year as much as I’m allowed in my 401 K and Roth IRA. Throw every year as much as I’m allowed in a health savings account. Travel a little bit more and maybe a bit more comfortable. Buy a coffee book store. (I have always wanted to have that business) or another small business. Make donations and get more actively involved in the charities that I like, maybe make my own. and yes, I wouldn’t tell anyone.. it just would be awesome, wake up early and go to work knowing that I do it because I like it and not because I like it but also I need it.
What would you do if you won the $1 billion Mega Millions jackpot?
There is a good chance —although not a certain chance— that the amount you actually receive will be what’s left over AFTER Federal and State Taxes have been deducted.Which basically means you get about 800 million, which kind of makes you wonder why you even bothered.But assuming you DID bother, and assuming you DID win, you’ll need to consider what to do with the measly 800 million, whether taxes are paid at issue of the prize, or later. The winner of the drawing will be warned by lottery officials to consult with financial advisors about how to handle the new found wealth.And if I were the winner, I would politely acknowledge their interest in my financial and personal welfare and then go do what I would do anyway, which is the following:If anonymity is an option, I would choose it. I don’t want to be bugged by anyone who needs money or wants to “help” me.I would consult with my CPA to make sure all tax implications have been properly addressed.Whatever I may safely claim as my own I would transfer to my investment account, where the sum would sit as a core cash account until I had time to figure out what to do with it.Now I can take a deep breath and relax. The taxman is satisfied, and there is no need for me to do anything more until I am motivated to do so. The amount, itself, is not an incentive to do anything.If I had any financial monkeys on my back —mortgages, car payments, etc. , I would pay them off so as to become free of any long term debt.The above 5 items are what I believe anyone should do. I am, frankly, amazed that other respondents advise to hire lawyers, accountants, etc. If you are not familiar with handling unexpected large sums of money, then maybe so. Otherwise, it is “just money” and the amount should invoke no special attention.Would I, as an individual, build huge homes, buy boats and planes? I doubt it. I already have more than I need. I would probably focus on the needs of others, so as to get rid of my wealth as soon as possible, keeping enough to assure that I’ll be well funded for the few years remaining in my life.Hope that helps.