Another Elio Blog With Nothing New...

[CrimsonEclipse]

Washington State doesn't have any of those taxes and the federal tax is 25%
You can go right to your lottery site and it has the payout and taxes for each state.
Plus the lump sum payment, and the annuity payments (annuity is bad, you don't really start getting into bigger money until the 12th to 15th year.)

Here's a tax calculator state by state, and the tax rates, plus the payout amounts.

https://www.usamega.com/powerball-jackpot.asp

How is federal income tax only 25%?
I was under the impression that the top tax bracket was 39.6%

 

[Coss]

How is federal income tax only 25%?
I was under the impression that the top tax bracket was 39.6%

I quoted what they are showing; I'm not an accountant, nor do I know or understand how the IRS arrives at these amounts.
If it's different, that would be something you'd have to take up with a professional tax accountant.

Don't they always say the rich get richer because they can afford the really good accountants?

 

[Adamant]

Assuming $1.5 billion, $840 million would be the cash option and $546 million after federal taxes, state, county and city taxes not included.

(using a 56% average cash option, 35% federal income tax)

Ugh, that's disgusting. I literally want to vomit in my mouth thinking about it. It's robbery what they do to those who win.

 

[BlioKart]

Ugh, that's disgusting. I literally want to vomit in my mouth thinking about it. It's robbery what they do to those who win.

They can victimize me with millions of dollars any day. Ill have to dry my tears by buying a Ferrari

 

[Adamant]

They can victimize me with millions of dollars any day. Ill have to dry my tears by buying a Ferrari

It's more than millions. At this point, whoever wins (if it's just a single person) they'll get robbed of literally a Billion dollars after the parasites and leeches are done pillaging their winnings. I'm not cool with that. Yes, you still get a life changing amount of money, many times over, but to lose as much as you do is just deplorable and disgusting. I'm happy for those who don't let it bother them, but I can't do it. I just can't do it. I take no issue admitting that it absolutely infuriates me beyond measure. It's ridiculous!

 

[bowers baldwin]

For me, the money is not "earned", and anyone who plunked Down their $2 knows if they take the lump sum they will get taxed to death, but still, if it means they take a bunch but I can retire tonight, I'm OK with that. Besides for most (99.999999%) it's just a $2 dream anyway, I was more of likely to be mailed by a polar bear buying my ticket than winning..

(mauled by a bear, dang cell phone autocorrect)

 

[Coss]

For me, the money is not "earned", and anyone who plunked Down their $2 knows if they take the lump sum they will get taxed to death, but still, if it means they take a bunch but I can retire tonight, I'm OK with that. Besides for most (99.999999%) it's just a $2 dream anyway, I was more of likely to be mailed by a polar bear buying my ticket than winning..

(mauled by a bear, dang cell phone autocorrect)

If you had a Polar Bear folding you and stuffing you in an envelope you might change your mind about that autocorrect.

 

[bowers baldwin]

If you had a Polar Bear folding you and stuffing you in an envelope you might change your mind about that autocorrect.

Oddly enough, the chances of being shipped by a wild polar bear is just slightly less than winning the powerball.

at least here in Pennsylvania, not sure on the odds for our northern neighbors.

 

[Elio Amazed]

The federal withholding on the lump sum payout is 25%.
The actual federal tax is 39.6%

http://www.nydailynews.com/news/nat...oars-1-5b-wednesday-drawing-article-1.2494007

 

[Sethodine]

Although, taxes wouldn't be due until the following year. That gives you a year to get an accountant and figure out how to divide the money up between charities, investments, etc. so that you get taxed the least amount. Because when you have money, you can afford to legally cheat the system.

And you aren't really "losing" any money with the lump sum option. That cash amount is the same amount that would otherwise be getting shoved into a government-run savings account, and the "$1.5 Billion" number is just the estimated total including compound interest over the lifetime of the annuity. But due to inflation, I imagine that grand total 20-30 years from now and the lump sum today are probably worth about the same.