|
Wow, a prime example of why such large lottery jackpots are a bad idea.
With that said, after taking the cash option (I assume she's taking that) drops it down to around $100 million, and then taxes will further drop it down to $50 million ...
On aside, the state where one buys a Megaball / Powerball ticket can make a big difference in taxation ... for example, in Pennsylvania, there's no state tax on lottery winnings whereas in Idaho, where she won, the state rate is an exorbitant 7.8%...
Bad, but there are some states even worse - probably the worst state to win the lottery in is New Hampshire - they levy a separate 10% Gambling tax on gross winnings (from my understanding, losses can't be offset unlike with many other states and federal tax)... and to make matters worse, people who won before the tax even existed get hit with the 10% tax too - another risk of taking an annuity verses all cash upfront.
Rambling on, but where one buys a ticket can make a big difference in the tax they pay - many players don't realize that each state administers Megaball / Powerball separately with each maintaining its own database of selected numbers...
Also, states that participate can have difffering play (ie. some states don't offer the megaplier option) and payout rules, such as California in which payouts for lower prizes, which are typically fixed, are parimutuel - sometimes that's works out great for players, but often not with winners getting far less than in neighboring states.
Ron
__________________
Domagon - Website Management and Domain Name Sales
|