lilredrooster
lilredrooster
Joined: May 8, 2015
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January 23rd, 2021 at 2:18:13 AM permalink
.............................


wow, apparently it's only the 2nd highest score - didn't know that
the winner's lump sum cash option is $739.6 million............................................incredible




https://www.cnn.com/2021/01/23/us/mega-millions-winner-michigan-trnd/index.html
𝘣𝘦𝘭𝘪𝘦𝘷𝘦 𝘰𝘯𝘭𝘺 𝘩𝘢𝘭𝘧 𝘰𝘧 𝘸𝘩𝘢𝘵 𝘺𝘰𝘶 𝘴𝘦𝘦 𝘢𝘯𝘥 𝘯𝘰𝘵𝘩𝘪𝘯𝘨 𝘵𝘩𝘢𝘵 𝘺𝘰𝘶 𝘩𝘦𝘢𝘳.........𝖤𝖽𝗀𝖺𝗋 𝖠𝗅𝗅𝖺𝗇 𝖯𝗈𝖾
terapined
terapined
Joined: Dec 1, 2012
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January 23rd, 2021 at 4:46:55 AM permalink
Quote: lilredrooster

.............................


wow, apparently it's only the 2nd highest score - didn't know that
the winner's lump sum cash option is $739.6 million............................................incredible




https://www.cnn.com/2021/01/23/us/mega-millions-winner-michigan-trnd/index.html


Will Dawg claim he won and Moma Belly defend?
"Everybody's bragging and drinking that wine, I can tell the Queen of Diamonds by the way she shines, Come to Daddy on an inside straight, I got no chance of losing this time" -Grateful Dead- "Loser"
DRich
DRich
Joined: Jul 6, 2012
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January 23rd, 2021 at 7:58:41 AM permalink
Quote: terapined

Will Dawg claim he won and Moma Belly defend?



Come on, MDawg doesn't need the money so he didn't even play it. Instead of spending $1 on a lottery ticket he probably put that $1 into Tesla.
Order from chaos
billryan
billryan
Joined: Nov 2, 2009
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Thanks for this post from:
MichaelBluejay
January 23rd, 2021 at 9:02:33 AM permalink
Quote: lilredrooster

.............................


wow, apparently it's only the 2nd highest score - didn't know that
the winner's lump sum cash option is $739.6 million............................................incredible




https://www.cnn.com/2021/01/23/us/mega-millions-winner-michigan-trnd/index.html




That's pre-tax so figure $400 million.
I've read about this lottery in Spain where the numbers are all sold regionally so when one resident hits the grads prize, everyone in his town that plays also wins.
I'd have more interest in a lottery that made a thousand people millionaires than one that makes a single person a billionaire.
rxwine
rxwine
Joined: Feb 28, 2010
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January 23rd, 2021 at 11:40:53 AM permalink
Wouldn't it be fun to have all the right numbers, but on last weeks ticket.
Quasimodo? Does that name ring a bell?
heatmap
heatmap
Joined: Feb 12, 2018
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January 23rd, 2021 at 12:01:50 PM permalink
Quote: billryan

That's pre-tax so figure $400 million.
I've read about this lottery in Spain where the numbers are all sold regionally so when one resident hits the grads prize, everyone in his town that plays also wins.
I'd have more interest in a lottery that made a thousand people millionaires than one that makes a single person a billionaire.



My motherís ex husband won close to 2 million ona slot machine in AC and since he lives in pa he apparently had to pay two states taxes from what I have hear which could be incorrect he ended up with like 800k or 9 Iím not sure tbh
billryan
billryan
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January 23rd, 2021 at 12:52:11 PM permalink
That depends on if it a two million dollar cash prize or if it was paid out over twenty years or so.

The lottery is paid out over many years, or you have the option to take a fixed sum. Either way, you are going to pay a lot of taxes.
I believe it also pushes all your other income into the highest tax bracket.
ThatDonGuy
ThatDonGuy
Joined: Jun 22, 2011
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Thanks for this post from:
onenickelmiracle
January 23rd, 2021 at 1:27:50 PM permalink
Quote: billryan

That depends on if it a two million dollar cash prize or if it was paid out over twenty years or so.

The lottery is paid out over many years, or you have the option to take a fixed sum. Either way, you are going to pay a lot of taxes.
I believe it also pushes all your other income into the highest tax bracket.


That last sentence is incorrect. Each tax bracket has a cap. This confused a lot of people when the Federal tax system was changed to have only two brackets (15% and 28%); people at the bottom part of the 28% bracket were afraid they would end up with less money than if they were at the top part of the 15% bracket. You only pay a particular bracket's percentage on the amount where it exceeds the next lower bracket's cap.

For example, Federal taxes for filing single are currently:
10% on the first $9875
12% on the next $30,250 (up to $40,125)
22% on the next $45,400 (up to $85,525)
24% on the next $77,775 (up to $163,300)
32% on the next $44,050 (up to $207,350)
35% on the next $311,050 (up to $518,400)
37% on anything above $518,400
If you made $100,000, you would pay $18,079.50,
However, if you made another $2 million, then you would pay $704,427 $741,427 total, which is about 33.5% 35.3% overall. You would not have to pay 37% on the entire $2.1 million.

It may seem like the entire amount is pushed into the top bracket because, in most cases, the amount in the lower brackets is small compared to the rest.
For example, if the $1 billion MegaMillions winner takes the annual payment option, the first payment is $11.57 million. Assuming a pre-lottery taxable income of $100,000 and a joint return, the total Federal tax on the first year is $4,255,049, or 36.46%,
Last edited by: ThatDonGuy on Jan 23, 2021
lilredrooster
lilredrooster
Joined: May 8, 2015
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January 23rd, 2021 at 1:47:30 PM permalink
.........................

state tax can be rough also, with Illinois at the highest with 14.96%........................quite a few states are over 10% - this includes the local or county tax

the link shows the various tax rates of different states


https://wallethub.com/edu/best-worst-states-to-be-a-taxpayer/2416



*
𝘣𝘦𝘭𝘪𝘦𝘷𝘦 𝘰𝘯𝘭𝘺 𝘩𝘢𝘭𝘧 𝘰𝘧 𝘸𝘩𝘢𝘵 𝘺𝘰𝘶 𝘴𝘦𝘦 𝘢𝘯𝘥 𝘯𝘰𝘵𝘩𝘪𝘯𝘨 𝘵𝘩𝘢𝘵 𝘺𝘰𝘶 𝘩𝘦𝘢𝘳.........𝖤𝖽𝗀𝖺𝗋 𝖠𝗅𝗅𝖺𝗇 𝖯𝗈𝖾
billryan
billryan
Joined: Nov 2, 2009
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January 23rd, 2021 at 1:51:26 PM permalink
Quote: ThatDonGuy

That last sentence is incorrect. Each tax bracket has a cap. This confused a lot of people when the Federal tax system was changed to have only two brackets (15% and 28%); people at the bottom part of the 28% bracket were afraid they would end up with less money than if they were at the top part of the 15% bracket. You only pay a particular bracket's percentage on the amount where it exceeds the next lower bracket's cap.

For example, Federal taxes for filing single are currently:
10% on the first $9875
12% on the next $30,250 (up to $40,125)
22% on the next $45,400 (up to $85,525)
24% on the next $77,775 (up to $163,300)
32% on the next $44,050 (up to $207,350)
35% on the next $311,050 (up to $518,400)
37% on anything above $518,400
If you made $100,000, you would pay $18,079.50,
However, if you made another $2 million, then you would pay $704,427 total, which is about 33.5% overall. You would not have to pay 37% on the entire $2.1 million.

It may seem like the entire amount is pushed into the top bracket because, in most cases, the amount in the lower brackets is small compared to the rest.
For example, if the $1 billion MegaMillions winner takes the annual payment option, the first payment is $11.57 million. Assuming a pre-lottery taxable income of $100,000 and a joint return, the total Federal tax on the first year is $4,255,049, or 36.46%,




Perhaps I am wrong, but I look at it like this.
If I get two million from lottery, I am paying $704,427., according to your figures. Now, after a year or two, I'm bored and return to work.
Those lower tax rates were already built into my taxes so any income I make above that is taxed at 37%, no?

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