View Single Post
Old November 26 2012, 04:21 AM   #30
SeerSGB
Admiral
 
SeerSGB's Avatar
 
Location: Tennessee
Re: Powerball. What could you do with a 425 million dollar lottery win

Ar-Pharazon wrote: View Post
Locutus of Bored wrote: View Post
Mr. Laser Beam wrote: View Post
After taxes, there probably wouldn't be much of it left anyway...
With a $425 million dollar jackpot, a single winnerís one-time lump sum cash payout would be $278,300,000.



Depending on which state you purchased the ticket in, your state taxes can range from a low of 0% (California and some other states don't tax in-state lottery winnings) to a high of 10.8% (New Jersey).

Federal taxes would be 25% of the lump sum or $69,575,000. New Jersey (highest) state withholdings would be $30,056,400.

In California (0%), you'd take home $208,725,000. In New Jersey (10.8%), you'd take home $178,668,600
(not counting back taxes, outstanding student loans, mandated child support payments, etc. which they would collect as well).

Sounds like a pretty damn good chunk of change to me (especially since I live in California).

http://www.inquisitr.com/411183/powe...million-prize/
http://www.afterlotto.com/lottery_calculator.html
I'd always thought the grand total of taxes was closer to 50%, due to it being lottery winnings.

Either way, being in my mid-40's, I'd go for the 25 or 29 yearly payments rather than give up around 40% for a lump sum.

It would also prevent me from blowing through a lump sum in some ridiculously short amount of time.
The long term payments makes for a good ideal. But my only concern would be could it be lefty behind payable to my heirs: Wife, kids?
__________________
- SeerSGB -
Good men don't need rules, The Doctor (A Good Man Goes To War)
SeerSGB is offline   Reply With Quote