Cash vs Annuity

Reply #9

Sorrento — Mon, 15 Jul 2019 21:32:03 GMT

Well, that's a relief to know it would be the full $1m or whatever the prize is, instead of the current value like it is with the jackpots. I've been paying the extra $1 lately and I think I come out better than before when I didn't. I win quite a few Free Tickets with the Florida lottery, and have won up to $40 on the Mega due to taking the Megaplier. Same with Powerball where I've been getting $12 instead of $4. I buy fewer tickets so what I spend on them is the same as before, when I didn't p... [ More ]

Reply #8

CDanaT — Mon, 15 Jul 2019 15:59:24 GMT

Gsct,

Secondary prizes are paid out as a cash payout only. There is not an annuity option on that prize level at all. Only the jackpot prize on a PB or MM or Lotto America has the annuity option. Your particular state that you play in, may have annuity options on particular state run games that might authorize annuity payments. Your state cannot change the MUSL rules on payouts for the PB or MM or LA. ALL secondary prizes are paid out in cash(no reduction

Reply #7

mikeintexas — Mon, 15 Jul 2019 15:55:49 GMT

I went to the N.M. site earlier looking for the answer, but decided I didn't want to d/l that PDF. The OP was unclear as to what game they were referring.

I ALWAYS play the multiplier because it would not be aggravation but probably real nausea to realize I had left several million bucks on the table for not shelling out the extra buck. I've never won any huge prizes, but I did get the bonus ball twice over the last few drawings and instead of winning only $4, I won $12 each time. Whoopee... [ More ]

Reply #6

gsct19 — Mon, 15 Jul 2019 15:53:16 GMT

Thanks for the info. I checked out the rules link and had never seen that particular rules guidline. You're right though, the taxes for my state plus federal would add up to a total of 43% and yes, paying the extra dollar for the power play or megaplier is a no brainer

Reply #5

gy65 — Mon, 15 Jul 2019 15:41:28 GMT

The rules state single payment .

24% federal and 6% New Mexico withholding . . but a $1 million win would put you in the 37% federal tax bracket, including wages for that tax year, so add on another 13%.

If you did hit a MegaMillions 5+0 with a 5 Megaplier, and did NOT pay the extra $1 . . one can only imagine the aggravation of $1 million versus $5 million . . after tax around $570,000 versus $2,850,000

Reply #4

gsct19 — Mon, 15 Jul 2019 14:55:17 GMT

Well that is/was my understanding as well but during my search I read conflicting reports so I guess until I hear from someone who actually had this winning experience, I may never know exactly. Perhaps I will call my local lottery office.

Reply #3

gsct19 — Mon, 15 Jul 2019 14:51:54 GMT

I'm posting here because the lottery rules are unclear. I'm referring to the powerball and mega specifically

Reply #2

user34 — Mon, 15 Jul 2019 14:46:42 GMT

You must be referring to Powerball and MegaMillions. The secondary prizes (non-jackpot) are paid from the state lottery fund (is my understanding) and there is no annuity option with them. If it was a state lottery game with a $1 mil. jackpot then to get that amount it would have to be the 25-30 year annuity.

Reply #1

Raven62 — Mon, 15 Jul 2019 14:42:45 GMT

Refer to the Rules of the Game in Question.

Cash vs Annuity

gsct19 — Mon, 15 Jul 2019 14:00:04 GMT

I've done many searches on this subject but haven't found a solid answer so I'm posting here. If you win a non jackpot prize, specifically one million dollars, does the cash vs annuity apply. In other words, if I win one million do I receive the one million minus the lottery tax deductions for federal and state or do they determine a cash option amount and take the taxes from that amount. Like when you win the jackpot the cash option is always a lesser amount than the annuity amount so does this... [ More ]