If you win $10 million from a Lotto scratcher and take lump sum they give you $5.8 million

[TidWell]

Then you get taxed on the 5.8 million you are left with, Im not sure the tax on that since im not in that tax bracket but you will probably be left with like 3.5 million right? So you are not really winning 10 million you win 3.5 million.

If anyone knows the right amount you are left with and is familiar with these high tax brackets please inform us.

if you take annuity you get $400,000 a year for 25 years

If you are under 30 the 400k a year is probably the better choice

But what always baffles me is why does the Government take half of your winnings when its people who invest in the lotto not the government, why cant they just tax you on the 10 million its almost like a double tax, they take out half to supposedly INVEST back into the state mainly in schools or something. why do they have to double dip?


I heard in Canada they don't do that they just tax you on what you won they don't double dip like that.

 

[BisexualMMA]

Well, the present value of money received in the future will be a lower amount due to interest, inflation. So it's not really screwing you over to provide a lesser figure as a present day lump sum.

Though they could be honest and say the lottery is for its present value in winnings.

 

[Swella]

Then you get taxed on the 5.8 million you are left with, Im not sure the tax on that since im not in that tax bracket but you will probably be left with like 3.5 million right? So you are not really winning 10 million you win 3.5 million.

If anyone knows the right amount you are left with and is familiar with these high tax brackets please inform us.

if you take annuity you get $400,000 a year for 25 years

If you are under 30 the 400k a year is probably the better choice

But what always baffles me is why does the Government take half of your winnings when its people who invest in the lotto not the government, why cant they just tax you on the 10 million its almost like a double tax, they take out half to supposedly INVEST back into the state mainly in schools or something. why do they have to double dip?


I heard in Canada they don't do that they just tax you on what you won they don't double dip like that.

In Canada, you do not get taxed on any lottery winnings.

 

[michal001]

you sound poor

poor people problems

math is hard (for the poor)

 

[TidWell]

you sound poor

poor people problems

math is hard (for the poor)

Yes I am poor can you help donate some money to my pay pal

 

[TidWell]

In Canada, you do not get taxed on any lottery winnings.

I thought they get taxed the next year please explain how the lotto works there in Canada.

 

[5crew]

In Singapore, we don't get taxed on lottery winning like Canada as well. But our highest lottery history is like 13m or 15m.

We also don't have capital gain tax from shares/stocks/whatever.

 

[luv24nic8]

Im too poor to even play the lottery- FML

 

[kahiljabroni]

Yeh it's pretty fked up considering the prize is just a fraction of what they take in. For every 1 million dollar winner they probably sell 3 million in losers. So the government is raking in money with their built in advantage, then they slap u in the face and take half for lump sum, then they tax you for half. It really goes to show how egregious taxation has become in this country. We need another Boston tea party type event

 

[Jesus X]

I couldn't even spend 3.5 mil with my low maintenance lifestyle, the most expensive thing I would buy is a ford raptor.

 

[Cool Hand Luke]

the tax bracket for that level of income is about 39%

 

[koolinkunming]

Yeh it's pretty fked up considering the prize is just a fraction of what they take in. For every 1 million dollar winner they probably sell 3 million in losers. So the government is raking in money with their built in advantage, then they slap u in the face and take half for lump sum, then they tax you for half. It really goes to show how egregious taxation has become in this country. We need another Boston tea party type event

Why do they take half of your winnings? Shouldn’t that half just be the tax on the total? What’s the justification of taking half, THEN taxing the remainder?

Tell me if I’m getting this right. That’s how it’s done in Murica?

 

[SummerStriker]

You’re much better off taking the 3.5 million. If you put it in a very conservative portfolio, you could be looking at 150k per year to live on, while your principal keeps up with inflation. If you’re frugal, it’s enough to set your family forever. Old money.

400k per year is for chumps.

 

[My name is]

I know a guy that won 5 million. He got around a 180k a year for I think 20 years. He ended up doing some dumb shit and cashing out after a couple years and blew that money on a gtr and a gas station that didn't last a year

 

[Hidden_Hand]

Here in England you don't get taxed so if you win 10 mil you get 10 mil.

And our record I believe is 167 million pounds.

You can also remain anonymous and still have all the money.

I don't like how America does it, seems shady.

 

[IndyCovaHart]

Im too poor to even play the lottery- FML

Only a damned fool plays the lottery.

Especially if they are playing while poor.

 

[Satsui Ryu]

Why do they take half of your winnings? Shouldn’t that half just be the tax on the total? What’s the justification of taking half, THEN taxing the remainder?

Tell me if I’m getting this right. That’s how it’s done in Murica?

They give you the "present value" of the winnings. Its a calculation used to value investments. They are technically not taking a chunk of the money away, they are giving you what the value of the 30 years of payments would be right at that moment.

The idea is the value of the money is based on how much you can make by investing it.

 

[ralphc1]

Yeh it's pretty fked up considering the prize is just a fraction of what they take in. For every 1 million dollar winner they probably sell 3 million in losers. So the government is raking in money with their built in advantage, then they slap u in the face and take half for lump sum, then they tax you for half. It really goes to show how egregious taxation has become in this country. We need another Boston tea party type event

As far as I know, nobody is forced to play the lottery. It is a voluntary "tax". What would be the point in having a lottery that pays out as much as it takes in?

 

[gspieler]

Paying out 1/3 of what it's being advertised as is thievery.

 

[Hidden_Hand]

As far as I know, nobody is forced to play the lottery. It is a voluntary "tax". What would be the point in having a lottery that pays out as much as it takes in?

Well all deductions should be done before hand.

If you are playing for 100 million dollars you should be playing for 100 million.

The worst thing about the US lottery is when you have to declare yourself or something? I see that woman won 500 million or something but wasn't allowed to collect in secret? WTF