16 maintenance workers said to be New Jersey Powerball winners

Comment #34

RedStang — Tue, 13 Aug 2013 04:53:04 GMT

One lady (63) said she will keep working to get her pension. I would do the same.

Comment #33

OldSchoolPa — Mon, 12 Aug 2013 20:48:57 GMT

On one hand, it is nice that people in this NJ garage lottery pool impacted by Hurricane Sandy won, but on another hand, one of the group members mentioned they only play when the jackpot gets big and that really sucks! That is why I want to be the sole winner of a mondo humongous jackpot so I can say I have played lottery as soon as I was of legal age and do so even when I travel (subscription, advance plays, calls to relative in another state, etc.). Or I could just aim to piss people off, and... [ More ]

Comment #32

RedStang — Sat, 10 Aug 2013 21:12:33 GMT

I was wondering also if there were other workers that refused to play. We have a few buttheads that never join our lotto pool.

Comment #31

JWBlue — Sat, 10 Aug 2013 18:47:32 GMT

Now the question is, how many people that did not win are going to stake a claim to a share of the jackpot.

Comment #30

Toronto — Sat, 10 Aug 2013 17:42:57 GMT

http://www.pwc.com/en_US/us/washington-national-tax/newsletters/private-company-services-tax/assets/pwc-understanding-net-investment-income-tax.pdf

Here's a document explaining the 3.8% tax.

Not addressed in the preamble or regulations is the treatment of income from currency transactions that are not associated with a trade or business, lottery/gambling winnings, foreign pension plan payments, or foreign government plan payments.

You can also look at the law yourself. It doesn't list... [ More ]

Comment #29

HaveABall — Sat, 10 Aug 2013 17:33:59 GMT

This 3.8% UIMT was simply another poor naming choice that occurred 3 years ago. Regardless, a multi-hundred-thousands+ lottery jackpot winner still gets to pay it ... in addition to their County, State, and Federal Income Taxes.

Regarding the New Jersey State's Total Maximum 10.8% tax that used to appear in USAmega, now New Jersey only reads as 3%. So, which additional states show us only the State's lower initial withholding and not what the total/actual State's Maximum Tax will be? Now I'm... [ More ]

Comment #28

Ronnie316 — Sat, 10 Aug 2013 15:56:40 GMT

When will PB start putting pool play on their play slips

Comment #27

Toronto — Sat, 10 Aug 2013 14:31:15 GMT

Despite the lottery being unearned, it is taxed as ordinary/other income and doesn't fall under the definition of unearned income under the new Medicare tax. so no 3.8

Comment #26

melodym34 — Sat, 10 Aug 2013 13:01:16 GMT

Congrats to the winners... No matter what the taxes end up being you are richer than me! Congrats

Comment #25

redhot7 — Sat, 10 Aug 2013 06:04:49 GMT

if you file single and your annual income is $250K plus you have $50K in investment income, you pay the 3.8% UIMT on $100K (or $250K + $50K - $200K = $100K).

I don't understand.

Shouldn't UIMT apply only on the 50K investment since only 50K investment income is unearned - the other 250K income is EARNED?

In other words, why should 250K income is included in the bracket if it is earned

Comment #24

FrostedNostrals — Sat, 10 Aug 2013 05:53:21 GMT

Umm. Ladies and Gents:

Don t forget about the 3.8% Unearned Income Medicare Tax (UIMT) that went into effect 1/1/13. UIMT is part of the Affordable Care Act passed by Congress in 2010.

The tax brackets for UIMT are as follows:

Single filers: $200K

Married filing jointly: $250K

Married filing separately: $125K

For example: If you file as a single taxpayer and your annual income is $150K with no investment income, you won t be taxed b/c you fall below the bracket threshold for s... [ More ]

Comment #23

redhot7 — Sat, 10 Aug 2013 03:25:29 GMT

Incidentally, if they choose annuity, each one of they would get the following payment before taxes.

Year % of Prize Annuity b4 Taxes

1 1.78% 166,562

2 1.85% 173,223

3 1.93% 180,154

4 2.01% 187,356

5 2.09% 194,858

6 2.17% 202,649

7 2.26% 210,757

8 2.35% 219,184

9 2.44% 227,955

10 2.54% 237,073

11 2.64% 246,555

12 2.74% 256,419

13 2.85% 266,677

14 2.97% 277,335

15 3.09% 288,433

16 3.21% 299,970

17 3.34% 311,965

18 3.47% 324,445

19 3.6... [ More ]

Comment #22

noise-gate — Sat, 10 Aug 2013 03:10:32 GMT

if what you say is true Haymaker- you ought to follow this advice from the Powerball Jackpot analysis.

... If you are aware of a percentage being out of date, please contact us to let us know, and we will update it. Please only contact us about lottery withholding rates, not the state income tax or sales tax rate. See Note #3 for more information.

Comment #21

weshar75 — Sat, 10 Aug 2013 03:07:43 GMT

Congrats to the 16 workers on winning the lotto. Have fun spending the money.-weshar75

Comment #20

Toronto — Sat, 10 Aug 2013 02:54:54 GMT

State income tax counts as pre-tax deduction when calculating federal tax. So you figure out state amount first (10.8%) then subtract that amount from your prize for the balance use to calculate the up to 39.6% rate you'll pay on that ( the brackets before 39.6% are marginal really given the amount). It's also technically 258.2/3/16

Comment #19

noise-gate — Sat, 10 Aug 2013 02:14:40 GMT

A win is a win and congrats to all of these hard working people.

* Still not inclined to join a pool no matter what.

Comment #18

haymaker — Sat, 10 Aug 2013 00:46:52 GMT

It comes from greedy pols that run this state, they passed the law In the middle of the night,

the complicit liberal press failed to mention It.

I did'nt know about til I learned It on this site.

As for USA mega that's just w/holding.

All said and done It's 10.8

Comment #17

haymaker — Sat, 10 Aug 2013 00:27:31 GMT

Thanks, nearly forgot that, that was the proof of Jersey's greed,

the retro $ grab.

And It's 10.8 % they probabaly wanted 11% but wanted to avoid appearing greedy so settled for 10.8%

just like a retailer that price's everything at something 99

Comment #16

helpmewin — Sat, 10 Aug 2013 00:22:57 GMT

Congrats to all the winners spend wisely

Comment #15

haymaker — Sat, 10 Aug 2013 00:11:59 GMT

Did'nt think about the bama taxes, my error was that I did'nt use the cash value as my basis.

The Jersey tax Is 10.8 % and has been In effect for at least 4 years, most don't know about It B/C the law was passed In the middle of the night.

The lawmakers In Jersey don't have a SET but they are greedy.

If you look at JP analysis on USA mega you see 3% for Jersey, but that Is only the w/holding.

Comment #14

OldSchoolPa — Sat, 10 Aug 2013 00:08:54 GMT

NJ instituted a 10% tax on lottery winnings that they applied retroactively to those Chubb jackpot winners.

Comment #13

scarchelli — Sat, 10 Aug 2013 00:04:48 GMT

Where does the 10% NJ tax come from? Their tax is 3% says USA Mega...

Comment #12

OldSchoolPa — Fri, 09 Aug 2013 23:58:30 GMT

After taxes are taken out (the new higher Obama taxes along with the new 10 percent tax in NJ), they will only clear about 2.7 million. Still not bad, but certainly that Minnesota guy is much better off.

Comment #11

haymaker — Fri, 09 Aug 2013 22:08:25 GMT

Oh I get It now, the 3rd tax is the $ you lose when you take the cash value

Comment #10

haymaker — Fri, 09 Aug 2013 22:06:11 GMT

Oh, OK , my calculations are wrong then as I did'nt use the cash value for my basis,

yes 2.7 Is much closer to the clear.

Thanks

No wonder everyone still went to work, not enough to retire w/out thinking It over unless you're already close to It,

most of the winners look to young for that.

Comment #9

KY Floyd — Fri, 09 Aug 2013 22:00:47 GMT

You seem to have forgotten that virtually nobody takes the annuity. The cash value of each ticket is a hair over $86 milin before taxes, so split 16 ways they start from about $5.375 million.

Comment #8

KY Floyd — Fri, 09 Aug 2013 21:57:30 GMT

$86 million cash / 16 = $5.375 million

$5.375 million * .72 (25% federal and 3% NJ withholding) = $3.87 million

That's what their checks should be, but their final tax bill may be higher. NJ taxes lottery winnings at 10.8%, so the maximum federal rate of 39.6% means their net could be closer to 50%, which is about $2.7 million.

Comment #7

haymaker — Fri, 09 Aug 2013 21:50:15 GMT

My 4.6 figure already had the the federal 39% and the Jersey 10.8 % worked in,

not sure what you meant by 3 taxes

did I miss something

Comment #6

dallascowboyfan — Fri, 09 Aug 2013 21:46:29 GMT

Me too

Comment #5

HaveABall — Fri, 09 Aug 2013 21:45:33 GMT

Then after the 3 taxes, if the 16 people have even shares, their 'NET cash option income' would be apx. $2.93M each.

Enough for a small family to retire and live comfortably (have to remain living remainder life together in 1 house though) off their annual $100K (-25% investment's tax) investment's interest. Or, enough for a solo person to retire and live semi-extravagant life on same annual $100K investment's pre-taxed interest.

Comment #4

dallascowboyfan — Fri, 09 Aug 2013 21:45:09 GMT

Congratulations to the Ocean 16

Comment #3

haymaker — Fri, 09 Aug 2013 21:33:48 GMT

I like this, people who get their hands dirty making a living,

ya know, like me LOL

Comment #2

haymaker — Fri, 09 Aug 2013 21:26:58 GMT

Just a rough calculation, but I guess each Is going to clear about 4.6 mils.

more than enough for me.

Comment #1

ThatScaryChick — Fri, 09 Aug 2013 20:51:51 GMT

That's a large pool of people. I wonder how much they will end up each taking home. Congrats to them on their win tho

16 maintenance workers said to be New Jersey Powerball winners

Lottery Post — Fri, 09 Aug 2013 20:44:33 GMT

A group of 16 maintenance workers from a county government garage in New Jersey share one of three winning tickets in the $448 million Powerball lottery jackpot, their boss said on Friday.

Yes, we have 16 county workers from the Vehicle Maintenance Department who have won the lottery, Ocean County Vehicle Maintenance Department Director Jim Pine told Reuters.

New Jersey Lottery spokeswoman Judith Drucker said on Friday the owners of the two winning tickets sold in New Jersey, including th... [ More ]