I don't play lotteries. To me that's like betting I'll be struck by lightening a number of times.

But I saw all the hoopla about the 'billion dollar prize' last week, which was won by a single ticket.

"Billion dollar prize"? LOL Maybe for the governments.

Mega Millions $1.337B Jackpot Winner May Only Earn $453M After Tax (breitbart.com)

1 hour ago, 45Doll said:

I don't play lotteries. To me that's like betting I'll be struck by lightening a number of times.

But I saw all the hoopla about the 'billion dollar prize' last week, which was won by a single ticket.

"Billion dollar prize"? LOL Maybe for the governments.

Mega Millions $1.337B Jackpot Winner May Only Earn $453M After Tax (breitbart.com)

Of you choose the instant cash out, it's always lower, and isn't it almost 40% tax or something?.... "for the children".

5 minutes ago, JackDaWack said:

Of you choose the instant cash out, it's always lower, and isn't it almost 40% tax or something?.... "for the children".

The cash option is always like two thirds of the annuity value before taxes. 

lottery winnings should be tax free. 

10 minutes ago, silverado427 said:

The cash option is always like two thirds of the annuity value before taxes. 

lottery winnings should be tax free. 

Meh, I dont see why it should be tax free... If I'm paying taxes on actual earned income.... fuck that. 

The lottery is just like many other sin taxes, it's allowed with the presumption the tax will be used for something "good". NJ lotto tax is supposed to go to schools. 

20 minutes ago, JackDaWack said:

Of you choose the instant cash out, it's always lower, and isn't it almost 40% tax or something?.... "for the children".

My understanding is if you take the annuity payments (typically 30 years) you wind up with the most money. More total payout and less taxable income every year. Of course you have to live that long to collect it. So your age may factor in.

With the annuity, I'm wondering if your outstanding payments become part of your estate if you die. If yes and you're not greedy in this life, you could pass on the balance to your heir(s). 

If you did that, just watch your six. 

That's hot stuff that someone defies overwhelming odds to win the money, and the government gets nearly twice as much. 

55 minutes ago, 45Doll said:

My understanding is if you take the annuity payments (typically 30 years) you wind up with the most money. More total payout and less taxable income every year. Of course you have to live that long to collect it. So your age may factor in.

With the annuity, I'm wondering if your outstanding payments become part of your estate if you die. If yes and you're not greedy in this life, you could pass on the balance to your heir(s). 

If you did that, just watch your six. 

You would be an idiot to not put either the lump sum or annuity payments into a Trust. Gift tax ain't nothing to play with when looking at that kinda cash. 

1 hour ago, JackDaWack said:

Meh, I dont see why it should be tax free... If I'm paying taxes on actual earned income.... fuck that. 

The lottery is just like many other sin taxes, it's allowed with the presumption the tax will be used for something "good". NJ lotto tax is supposed to go to schools. 

The lottery did use to support schools and old people,  But Phildo rolled all the lotto money profits into the State pension fund.

1 hour ago, JackDaWack said:

"for the children".

 

1 hour ago, JackDaWack said:

NJ lotto tax is supposed to go to schools. 

Just think of all the classroom wokeness that could buy! Or teacher pension subsidies.....the possibilities are endless!

1 hour ago, 45Doll said:

My understanding is if you take the annuity payments (typically 30 years) you wind up with the most money. More total payout and less taxable income every year. Of course you have to live that long to collect it. So your age may factor in.

With the annuity, I'm wondering if your outstanding payments become part of your estate if you die. If yes and you're not greedy in this life, you could pass on the balance to your heir(s). 

If you did that, just watch your six. 

The annuity goes to the state if you die. It's pretty much why everyone takes the lump sum. 

Take the lump sum. If You die, your spouse and family ain't getting what's owed to you. 

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28 minutes ago, raz-0 said:

The annuity goes to the state if you die. It's pretty much why everyone takes the lump sum. 

LOL! So the government will claw back 66% of your 'winnings' either on the front end or the back end of your life!

That's a good enough reason to stop playing the lottery. We should deprive the governments of 100% of their winnings.

And by the way, I'm REALLY enjoying my reduced property taxes that originally establishing the lottery gave me. 

1 hour ago, raz-0 said:

The annuity goes to the state if you die. It's pretty much why everyone takes the lump sum. 

No it doesn't.   It goes to your heirs.    Unless its the "cash for life" type of winnings.. then you are only guaranteed to get up to a certain amount.   "Cash for Life: Annuitant shall be paid their appropriate Jackpot Prize share or Second Level Prize share on an annual basis for their Measuring Life, or for the twenty (20) year term of the Guaranteed Annuity Portion, whichever is longer."

All regular annuities go to your your estate upon death.

13 minutes ago, Lakota said:

No it doesn't.   It goes to your heirs.    Unless its the "cash for life" type of winnings.. then you are only guaranteed to get up to a certain amount.   "Cash for Life: Annuitant shall be paid their appropriate Jackpot Prize share or Second Level Prize share on an annual basis for their Measuring Life, or for the twenty (20) year term of the Guaranteed Annuity Portion, whichever is longer."

All regular annuities go to your your estate upon death.

It depends on the specific lottery, the state you win it in, and what probate law is in the state you die in. 

Don't count on the annuity paying out properly after your death. 

For example the powerball and mega millions seem to have adjusted theirs over the years, likely due to the large jackpots. They try to cash it out on death and hand it to the estate as a lump sum. Which may not be legal in every state. 

Some will pass your annuity to your next of kin. Which if you are old and married, may be your spouse who kicks it shortly after the first new years after you die. Then the state keeps what's left as the annuity in that case was property of the estate and can not be passed on by the inheritor. 

You gotta read the fine print every time. Assume they are planning to fuck you over. 

20 hours ago, 45Doll said:

My understanding is if you take the annuity payments (typically 30 years) you wind up with the most money. More total payout and less taxable income every year. Of course you have to live that long to collect it. So your age may factor in.

With the annuity, I'm wondering if your outstanding payments become part of your estate if you die. If yes and you're not greedy in this life, you could pass on the balance to your heir(s). 

If you did that, just watch your six. 

I'll take that annuity any day.  The perfect retirement plan!

It's double taxation if you think about it, the state already makes tax on the ticket sales, they also get it back oin the ticket winnings which were taxed already as part of the sales that the winnings came from. It's a win/win for the state.

With a payout this large, I don't think you will be seeing any tax benefits taking the annuity payments. 

Dude, we are talking MILLIONS whatever the amount if I won, I'm all set.

16 minutes ago, JimB1 said:

It's double taxation if you think about it, the state already makes tax on the ticket sales, they also get it back oin the ticket winnings which were taxed already as part of the sales that the winnings came from. It's a win/win for the state.

I'm pretty sure this falls under similar situation as gambling, there is no tax when you put in a ticket, only If you win. 

If you cashed in 300 bucks for chips, or made a bet, you don't pay tax on that. Same with paying for a 2 dollar lotto ticket. Technically nothing is being sold. 

https://www.liveabout.com/where-does-lottery-money-go-4159831

50-60% goes to winners

10% goes to administration of the lottery

5% goes to commissions for lottery sales points

25 - 35% goes to the states that participate in the lottery.

 

So the state makes money off the sales of the tickets not just the winnings.