• Not accounting for inflation over the payout period, it depends on the federal and state tax rates charged. Federal is ~25-28%, state varies from 4-8% IIRC. In general, the rule of thumb is that you get more than half and less than two-thirds.
  • depends on the amount of the prize. Lets say you won 100,000,000.00 in a lump sum. You would be taxed almost 40 percent. so you'd get around 60,000,000.00 This is slightly less than the current powerball jackpot would get you(65-70mil), if you won it all by yourself. Don't be fooled by the "announced" after taxes figure they would say in the media. That's always based on 28 percent, they hit you up for the rest by April 15th, the following year.
  • I should add that people get the 28 percent figure from the "taxes on winnings" laws, and don't take into account that once you go over a certain income level, you owe the extra "income tax" for that bracket.Of course this info is given to you if you do win. Its just that the Lotteries like to go with the lower figure in advertising prizes won. Think of it like this...when they say somebody like Julia Roberts gets 20,000,0000 a picture, they don't bother to say, she only nets 12,000,000!!
  • A better rule of thumb is you take the cash value the prize is about 1/3 of the total amount.
  • If you win considered not telling a soul and getting on the plane to the Caymens or another tax haven and finding a lawyer.

Copyright 2023, Wired Ivy, LLC

Answerbag | Terms of Service | Privacy Policy