If you win 1 million from PB or MM how much do you get?

Reply #30

Artist77 — Fri, 29 Jun 2018 01:24:18 GMT

If you try reading the posts, the question was answered.

Reply #29

wander73 — Fri, 29 Jun 2018 00:59:47 GMT

I thought it was 40% or is that just the big prize.

Reply #28

wander73 — Fri, 29 Jun 2018 00:43:30 GMT

If my dad was alive, he would know this answer in two seconds. So, I could ask a couple of people who are tax preparers.

Reply #27

music* — Tue, 26 Jun 2018 21:58:42 GMT

Thank You Stack47 for the update on IRS for W-2G instructions.

Reply #26

Stack47 — Tue, 26 Jun 2018 03:28:42 GMT

The W-2G instructions change December 31, 2017 and now it's 24%.

Reply #25

noise-gate — Mon, 25 Jun 2018 04:36:03 GMT

Music- The total still comes out to 37% for the Fed's, whether you pay 24% up front, and 13% the following year. I have no idea whether the California lottery expects one to think they being given a break, because they not. Kinda reminds me of items for sale that say Only $4.99 instead of saying $5.00. As if that 0.01 makes a major difference to your pocket.

Hooray for CA not taxing lottery winnings.. for now. Not taxing lottery winnings was not on the ballot, but if this State goes looking f... [ More ]

Reply #24

music* — Mon, 25 Jun 2018 04:13:05 GMT

noise-gate, Please look at the Winner's Handbook and read where the Feds only take out 24% and you are left to pay the rest 13%. Plus taxes on any income from other sources. I will hire a CPA. I will be able to afford one.

Hooray for California not taxing lottery winnings! That saves us 13.3

Reply #23

grwurston — Sun, 24 Jun 2018 23:38:55 GMT

You're welcome!!! All you have to do is ask...

Reply #22

CDanaT — Sun, 24 Jun 2018 22:38:54 GMT

You win $1,000,000.00

Lottery automatically withholds ONLY 25% Federal Taxes or $250,000.00 for SOME OF THE OWED Federal taxes( not the full amount)

Your Federal Tax bracket on $1,000,000.00 is 37% or $370,000.00(unless you have deductions to offset the $370,000. that is owed)

The difference between $250,000.00 taken and the $370,000.00 that is owed..... is $120,000.00

You still owe the US government this $120,000.00

Depending on your state ? you could owe state income tax in add... [ More ]

Reply #21

lottoman86 — Sun, 24 Jun 2018 22:21:39 GMT

I understand it a lot better now. Thank you all for the help in explaining this to me. I really appreciate it.

Reply #20

grwurston — Sun, 24 Jun 2018 22:14:43 GMT

From the USA MEGA site.

Are lottery prizes taxable?

Lottery winnings of $600.01 and over are subject to Federal Withholding tax. For winnings of $600.01, up to and including $5,000, you will be issued a W-2G form to report your winnings on your federal income tax form. For winnings of $5,000.01 and over, your state's Department of Revenue removes the 25 percent federal withholding before you receive your winnings check (or, if it is an annuity, from each winnings check). You then receive a... [ More ]

Reply #19

Artist77 — Sun, 24 Jun 2018 21:07:32 GMT

What? It is no different than an employer withholding taxes. You can deduct the taxes paid from the total amount you still owe. It is your money and the taxes are deducted on your behalf. Have you ever received a paycheck

Reply #18

noise-gate — Sun, 24 Jun 2018 20:49:44 GMT

The IRS total take from a lottery winner's winnings is 37%, it used to be 39.6%. Since the Fed's take 25% up front, you will owe the balance of the 37% to the Fed's,and taxes to your State and local taxes, if that applies. However, if your State does not take taxes from lottery winnings like California a few other States, you get to keep a little more of your money.

Reply #17

ressuccess — Sun, 24 Jun 2018 20:40:10 GMT

California's money is different. Their payout is pari-mutuel basis and will differ from the fixed prize amounts shown here.

Reply #16

grwurston — Sun, 24 Jun 2018 20:21:16 GMT

Click on USA MEGA under the Quick Links section. Then scroll down to the FAQ's and also to Jackpot Analysis. That will tell you how long you have to claim the prize, how much each state gets in taxes, and will give the breakdown between taking the cash and the annuity as to how much you will get. It will also tell how much you would get each year if you take the annuity. See also, are lottery prizes taxable under the FAQ section.

Reply #15

Stack47 — Sun, 24 Jun 2018 20:01:35 GMT

Lotteries always withhold 25% in Federal taxes for U.S. citizens and state and local taxes will be withheld where it applies. If your state taxes are 6%, a total of 31% is deducted so you can expect a check for $690,000. But you're still not done because the winnings are income and you'll probably owe the IRS another $80,000 the following April 15.

But the good news is you should have around $600,000 to enjoy.

Reply #14

lottoman86 — Sun, 24 Jun 2018 19:20:14 GMT

Ok, so you say they withhold 25-30% for taxes so does this mean the tax owed on the lump sum is pulled out automatically or does the recipient have to report the income still and pay taxes on it even after they withhold a certain percent for taxes? This is where I am confused.

Reply #13

lottoman86 — Sun, 24 Jun 2018 19:17:40 GMT

I am in fact reading what people are telling me here. I am just trying to understand it all. You said the lottery usually withholds 25% for fed taxes but you are responsible for paying the rest of the fed and state taxes. Ok, can you elaborate on this more please? This doesn't make sense to me because it sounds like the lottery is having to pay taxes on money they are giving to someone. That doesn't make sense. If they withhold a certain percent for fed taxes then why is the money taxed again fo... [ More ]

Reply #12

Artist77 — Sun, 24 Jun 2018 16:21:41 GMT

You are not reading what anyone has been telling you. The lottery usually withholds 25% for fed taxes but you are responsible for paying the rest of the fed and state taxes.

Reply #11

MsBee18 — Sun, 24 Jun 2018 15:16:30 GMT

You get the full million minus federal withholding. Most states withhold 25% to 30% for taxes so the net difference to you is $750k or $700k respectively.

Reply #10

keepitreal — Sun, 24 Jun 2018 07:09:50 GMT

If you win 1 million I hear you have to pay taxes on it. Like 45%. They take it out from your winning.

Reply #9

keepitreal — Sun, 24 Jun 2018 05:57:05 GMT

They keep a percentage I hear.

Reply #8

lottoman86 — Sun, 24 Jun 2018 05:51:32 GMT

I found that website earlier but it didn't show how much or even if the lottery keeps a certain percent of the 1 million dollar prize for matching 5 white numbers. Do you get the full 1 million in 1 payment or do they keep a percentage

Reply #7

partlycloudy07 — Sun, 24 Jun 2018 05:48:28 GMT

http://time.com/money/4908742/powerball-taxes-state/

that may help show each state's regulations on what they will take out

Reply #6

lottoman86 — Sun, 24 Jun 2018 05:40:27 GMT

I read the 1 million dollar prizes from matching 5 white numbers is paid as a lump sum meaning 1 payment. But how much do they give you? Is it the full 1 million in 1 lump sum or does the lottery keep a certain percent? I didn't think state mattered on that aspect of it. But what about Louisiana for example

Reply #5

keepitreal — Sun, 24 Jun 2018 05:30:28 GMT

I think it have to do with the state you live in.

Reply #4

lottoman86 — Sun, 24 Jun 2018 04:59:08 GMT

I'm just asking how the payout works. I'm not looking for a specific number. I can figure that myself if I know how it is paid out.

Reply #3

wander73 — Sun, 24 Jun 2018 04:57:58 GMT

Ask your accountant. It might be $386k.

Reply #2

lottoman86 — Sun, 24 Jun 2018 04:53:15 GMT

So for this prize they take everything when it is paid out or you get a lump sump percent and then pay taxes on that amount

Reply #1

keepitreal — Sun, 24 Jun 2018 04:51:03 GMT

I think they take like 1/3 of your winning. As in taxes. So if you win 1 million you get like $600,000. There a ticket in Michigan that if you win 1 million you get all 1 million. No taxes. It's a Scratch-Off called taxes free.

If you win 1 million from PB or MM how much do you get?

lottoman86 — Sun, 24 Jun 2018 04:30:06 GMT

I have read that the 1 million dollar prizes for matching 5 white numbers is paid as a lump sum. What I have not found out yet is how much is paid out for this prize. Does the lottery keep a certain percent and you get the rest or do you receive the full 1 million? If they do keep a certain percent, does that include the taxes or do you get your percent and then also have to pay taxes on that amount? What is an example of a final amount someone receives for a 1 million dollar prize