won $1 BILLION in lottery
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
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?
Quote: terapinedWill 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.
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.
Quote: billryanThat'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 mother’s 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 I’m not sure tbh
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.
Quote: billryanThat 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%,
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
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Quote: ThatDonGuyThat 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?
