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> $550m Lottery!
Florida Native
post Dec 10 2012, 07:05 PM
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I believe that the $192 million is the lump sum amount. The larger number is based on a 30 year payout and includes accrued interest. Taxes are deducted from the $192 million. A good estimate for the net amount for a lump sum payment after taxes is about 30 %. A 100 million jackpot would yield you about $30 million cash after taxes. Still no small amount. Looks like that tax rate will soon be going up also.


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Wink
post Dec 14 2012, 01:45 PM
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QUOTE(Lindsay Richards @ Dec 10 2012, 08:05 PM) *

I believe that the $192 million is the lump sum amount. The larger number is based on a 30 year payout and includes accrued interest. Taxes are deducted from the $192 million. A good estimate for the net amount for a lump sum payment after taxes is about 30 %. A 100 million jackpot would yield you about $30 million cash after taxes. Still no small amount. Looks like that tax rate will soon be going up also.



Lindsay I could still get someone else to wash and wax my trailer on no more than that. rolleyes.gif


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NYDutch
post Dec 14 2012, 04:55 PM
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QUOTE(Lindsay Richards @ Dec 10 2012, 08:05 PM) *

I believe that the $192 million is the lump sum amount. The larger number is based on a 30 year payout and includes accrued interest. Taxes are deducted from the $192 million. A good estimate for the net amount for a lump sum payment after taxes is about 30 %. A 100 million jackpot would yield you about $30 million cash after taxes. Still no small amount. Looks like that tax rate will soon be going up also.

The highest IRS tax bracket is 39.6% as far as I know. State income tax, in those states that collect it, could grab up an additional 10%, but that still doesn't add up to 70% in taxes. How did you arrive at your figure?


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Florida Native
post Dec 14 2012, 05:09 PM
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The amount stated on the billboards and tickets is for the 30 year payout. If you won $100 million, you would get 1/30th of that amount each year for 30 years. The remaining balance would be drawing interest. After 30 years, the total of the principal and interest together are $100 million. Most people opt for the lump sum figure, which does not include the interest or time value of the money. The tax is calculated on the value of the lump sum which you get right away. You invest it as you wish and pay taxes on that proceeds every year. Present max tax rate is 36%, but it will go to 39.6% in a few weeks as Washington thinks we have a taxing problem, not a spending problem. That 30% figure is a net/net approximation that can vary on the interest rate and the taxation rate. State tax would be on top. In CA, you would have to pay an additional 13% on the $30 million. Graduated rates make this a little less as you pay lower amounts on the cash leading up to the $250,000.
Don't worry about it thought as we won't win.


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NYDutch
post Dec 14 2012, 05:31 PM
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Ok, I must have misunderstood your post. I thought you were saying that the tax bite on the $100 million would be $70 million.


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Florida Native
post Dec 15 2012, 04:22 PM
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They really mislead about the total amount as very few people take the 30 year payout. It is still a lot of cashola.


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NYDutch
post Dec 15 2012, 05:08 PM
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Yeah, I could force myself to get by on that... biggrin.gif


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