Taxes and fees

Reply #9

Pleschuk — Sun, 28 Sep 2003 11:50:36 GMT

Thanks for the information everybody, now we just have to win one

Reply #8

twisted — Sat, 27 Sep 2003 23:24:59 GMT

Thanks Loops for the reply. I was wondering what was up with the taxes and now you have cleared it up. Living in New Jersey (or Washington) helps alot when buying or winning lotterys.

Reply #7

Loops — Sat, 27 Sep 2003 14:57:03 GMT

from http://www.irs.gov/taxpros/article/0,,id=96492,00.html~~If your clients receive a lump sum payment for their lottery p rize, the amount of withholding may not be sufficient to pay their Federal income tax for that year. After they receive their payment you should estimate their total income and tax liability for the year, using Form 1040-ES, Estimated Tax For Individuals, and consider making estimated tax payments, if necessary. This will ensure you their tax liability is paid by the time y... [ More ]

Reply #6

mken35 — Sat, 27 Sep 2003 14:27:41 GMT

Quote: O

Reply #5

twisted — Sat, 27 Sep 2003 11:31:10 GMT

I still dont see where you guys get 35% for federal tax. Check out this link.http://www.biggamelottery.com/jackpot.htm

Reply #4

CASH Only — Sat, 27 Sep 2003 11:06:31 GMT

Never PLAY for an annuity-always choose CASH, even if on paper annuity sounds better (you lose money if you sell an annuity for cash). You can always take part of a lump sum and purchase an annuity after you receive your winnings.

Reply #3

dvdiva — Fri, 26 Sep 2003 23:30:22 GMT

1. welcome to a high tax bracket if you win - 35%+ (50%+ if u have state income tax as bad as ca or ny)- make sure to get a good tax lawyer.2. you can sell the annuity also - there are groups that buy them so if you choose an annuity you can always cash it out later.

Reply #2

twisted — Fri, 26 Sep 2003 22:24:28 GMT

35% by uncle sam? I thought powerball only withholds 27% for federal tax. Mega Millions only withholds 25% for federal tax. I dont know how you get 35%. I think lottery winnings are taxed differently. They are not taxed the same way as your income for example.

Reply #1

hypersoniq — Fri, 26 Sep 2003 17:26:59 GMT

the cash value is actually all they have on them, the annuity value is a projected value of 20 or 30 years worth of investments based on the interest rate.that's not a fee, that's just creative advertising on the part of the lottery.Uncle Sam currently whacks you for 35% for anything over $300,000... the percentage goes down from there depending on personal financial situation...only amounts under $600 escape the tax man (at least here in Pennsylvania

Taxes and fees

Pleschuk — Fri, 26 Sep 2003 12:35:14 GMT

Hi all,These questions may have been answered already, but I couldn't find where.In Illinois, there is roughly a 49% fee for the cash payout option on the jackpot winnings. Does that include tax withholdings or is that just a convenience fee ? Do you then have to pay applicable taxes after that? If you do, that takes near 75% of the winnings away. Also, if it is just a convenience fee , where do they say it goes?Can anyone please clear this up?Thank you