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What are your thoughts on Gift Tax?Reply
The lotteries are also government organizations so does it make sense for them to tax the money they give out? If you've ever worked for the State, you know that the State refuses to pay sales tax as it would just be paying taxes to itself (bummer on the expense reports). The same argument should apply to lotteries. Of course lotteries are usually State governments and it's the Federal income tax that takes the big bite. In other countries (Canada, UK etc.), a lottery prize is considered a wi
Aug 23, 2010, 9:10 pm - jwhou - Lottery Discussion Forum

Vacationing man wins $1M scratch-off lottery jackpotReply
Congratulations to the winner, I hope that you will have enough to not only pay off your mortgage and purchase a new car, but also be able to enjoy additional expendatures. I am not sure if the states that do these 'unpublished' annuitized $1M, $2M, and $3Million dollar prizes are counting on people's stupidity or what. Many people play these annuitized jackpot prizes though, since some people track odds and they appear better than on-line games. I know that in Illinois, I go to the state's
Jul 27, 2010, 2:00 pm - HaveABall - Lottery News

Powrball Mega Millions JackpotsReply
This has been discussed so many times. Simply put, the structure of the games are different. With Mega Millions, the jackpot is paid in 26 installments, each of which are the same amount. With Powerball, the jackpot is paid in 30 installments, with the installments gradually increasing each year. REMEMBER, the cash option is not calculated from the annuity amount. It's the other way around. The annuity amount is calculated based on the amount of cash available(the cash value). This is where p
Mar 1, 2010, 1:53 am - Guru101 - Jackpot Games Forum

Except for the 14 million dollar difference in the cash value, MM and PB are almost equivalent.
Annuity PB: $95M. Cash: $46.1M Annuity MM: $99M Cash $60.6M And the odds, of course, for PB, are much, much, much worse. The annuity value of either is a case of false advertising but PB is worse than MM.
Feb 26, 2010, 4:46 am - Prob988 - Jackpot Games Forum

Winning the Jackpot and taxes.Reply
You'll actually be better off being in the highest tax bracket each year as would be the case with the annuity because the way taxes work is that you get taxed at a certain rate for the first tax bracket worth of income that year, at the next tax bracket rate for the amount made between that first tax bracket limit and the next tax bracket limit and so on so each tax bracket is sort of an allowance that you can have taxed at the lower rates. If you took the whole jackpot in one year than you onl
Feb 20, 2010, 3:32 am - jwhou - Lottery Discussion Forum

Only $5 million increaseReply
intresting thing about powerball inflated annuity, mm catchs up ON THE 2ND roll! i give you the lastest cash amount for pb first 2 draws vs mm pb $9.9 Million pb $12.3 Million mm $7 Million mm $12 Million as you can see mega millions is all but catched up by the 2nd draw on the 3rd roll, MM just got the lead and is not letting pb beat it ever again in cash , so mm= better jackpots overall going in deeper into it: pb inflated annuity really starts g
Feb 14, 2010, 12:21 pm - joshuacloak - Jackpot Games Forum

Does anybody else disagree with graduated annuities?Reply
The real reason for graduated annuities is to increase the advertised value of an imaginary jackpot even more. In terms of practicality to the rare winners that take the annuity, I figure they're looking for a steady and predictable income. If the cost of living goes up every year (and it almost always does), it makes sense for your income to go up by at least that much so that you don't lose any ground. Sure, most of us carry some amount of debt and most of us could think of a way to splurge
Jan 23, 2010, 12:04 pm - KY Floyd - Lottery Discussion Forum

For the Millionth Time...Reply
As much as people say that if your young you should take the annuity, I don't believe it's 100% safe due to on the Ohio Lottery website and I quote Upon claiming the Mega Millions jackpot, the prize winner is given the option to receive the prize winnings in a single cash payment. The gross cash option will represent the sum of the first annuity installment plus the net proceeds from the sale of the government securities originally purchased to fund the annuity prize. Government securities are s
Oct 1, 2009, 12:36 pm - MrJackpot - Lottery Discussion Forum

For the Millionth Time...Reply
Nino224 Consider that some jackpot winners who take the annuity wind up turning around and selling the annuity to one of those compnaies that buy them, and only offer pennies on the dollar. Someone here at LP has or had a signature, You can always buy a better annuity .
Oct 1, 2009, 9:53 am - Coin Toss - Lottery Discussion Forum

Where Does the Money Go?Reply
Even though the annuity earns interest, the whole thing is structured to close/end with zero on the final payment. I wonder what the annuity is invested in and whether the current low rate of return is having an effect on the advertised lottery prize. After all an annuity based on 2% (current CD rate) should be less than one based on 5%. BobP
Aug 19, 2009, 3:00 am - BobP - Lottery Discussion Forum