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  1. #1
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    Default Think this is right? Think again....

    Think this is right? Think again....-Tyr

    Mega Millions Lottery Winner Will Get a Mega Tax Bill
    The winning ticket for the $1 billion Mega Millions jackpot was bought in Michigan. After federal and state taxes are taken out, that amount will be much less.
    by: Rocky Mengle
    January 23, 2021


    Congratulations to the lucky winner who had the only ticket that matched all six numbers in Friday's Mega Millions lottery drawing. But there are two other entities who also won big – the federal government and the state of Michigan. That's because, between the two, they're going to get a big chunck of the $1 billion jackpot once the tax man claims his share.

    $1 billion is the estimated value of annuity payments over 30 years. If the winner opts for an immediate lump-sum cash payment, which is what usually happens, the actual payout is only $739.6 million — before taxes.


    Let's take a look at Uncle Sam's cut first. The top federal tax rate is 37% on 2021 income of more than $523,600 for individuals ($628,300 for married couples filing a joint return). That means last night's winner will pay about $273.6 million in federal income taxes, assuming he or she takes the lump sum. That knocks net winnings down to around $466 million. (The IRS will automatically take 24% of the winnings, and the winner will owe the rest at tax time).

    Now it's Michigan's turn. (Since the winning ticket was purchased in Novi, Michigan, we're assuming the winner is a Michigan resident.) Michigan has a flat income tax rate of 4.25%. Applying that rate to the $739.6 million lump-sum payout results in a state tax bill slightly under $31.5 million. The state will collect that amount right off the top, since the Michigan Lottery withholds 4.25% before it hands over the prize money.

    So, where does that leave our lucky winner? The combined federal and state tax will be about $305.1 million. When you take that out of the $739.6 million one-time payment, that leaves about $434.5 million in the winner's pocket. Not bad for a $2 investment…but not quite the $1 billion advertised.

    Federal and state government took over half...
    Amount went from a bit over ONE billion down to less than half at 434.5 million.

    Over half went to government but remember the ffing lousy dems think we aren't taxed enough!

    The winner never was A BILLIONAIRE.

    To ever win a billion dollars one would have to win a jackpot at about 1.75 billion. -Tyr
    Last edited by Tyr-Ziu Saxnot; 01-24-2021 at 05:48 PM.
    18 U.S. Code § 2381-Treason Whoever, owing allegiance to the United States, levies war against them or adheres to their enemies, giving them aid and comfort within the United States or elsewhere, is guilty of treason and shall suffer death, or shall be imprisoned not less than five years and fined under this title but not less than $10,000; and shall be incapable of holding any office under the United States.

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  3. #2
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    It's the decisions of folks to always take lump sum payments that pisses me off. And no, not that they choose to do so, but that they then will take so damn much right off the top.

    Here's what I don't get,

    If you take the payment over 30 years, you'll be taxed yearly I assume on your taxes, and of course taxes could go up or down. Instead, you take the lump sum and they instead then factor in what is basically their loss? So they take that $260 million cut right from the get go. And then they tax you another $273 million on your lump sum remaining payment. So well over half the winnings, around $533 million before you blink your eye.

    It's great to win but they still rob you.
    “You know the world is going crazy when the best rapper is a white guy, the best golfer is a black guy, the tallest guy in the NBA is Chinese, the Swiss hold the America's Cup, France is accusing the U.S. of arrogance, Germany doesn't want to go to war, and the three most powerful men in America are named "Bush", "Dick", and "Colin." Need I say more?” - Chris Rock

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    Quote Originally Posted by jimnyc View Post
    It's the decisions of folks to always take lump sum payments that pisses me off. And no, not that they choose to do so, but that they then will take so damn much right off the top.

    Here's what I don't get,

    If you take the payment over 30 years, you'll be taxed yearly I assume on your taxes, and of course taxes could go up or down. Instead, you take the lump sum and they instead then factor in what is basically their loss? So they take that $260 million cut right from the get go. And then they tax you another $273 million on your lump sum remaining payment. So well over half the winnings, around $533 million before you blink your eye.

    It's great to win but they still rob you.
    Take the lump sum and invest. Live off the interest.
    If the freedom of speech is taken away
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    Quote Originally Posted by Tyr-Ziu Saxnot View Post
    Think this is right? Think again....-Tyr
    Sounds about right. It's called taxes.

    Quote Originally Posted by SassyLady View Post
    Take the lump sum and invest. Live off the interest.
    Except that lottery winners have an awful track record of taking lump sum payouts. They should take the annual because they're largely incapable of handling that much money.
    "when socialism fails, blame capitalism and demand more socialism." - A friend
    "You know the difference between libs and right-wingers? Libs STFU when evidence refutes their false beliefs." - Another friend
    “Don't waste your time with explanations: people only hear what they want to hear.” - Paulo Coelho


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    Quote Originally Posted by fj1200 View Post
    Sounds about right. It's called taxes.



    Except that lottery winners have an awful track record of taking lump sum payouts. They should take the annual because they're largely incapable of handling that much money.
    I'm 69 and I've had investments since I retired and I live off the interest. Keeps me from spending it foolishly. Of course part of that lump settlement would be given away to people i care about and organizations I care about. I would probably die before I received the total annuity.
    If the freedom of speech is taken away
    then dumb and silent we may be led,
    like sheep to the slaughter.


    George Washington (1732-1799) First President of the USA.

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    Quote Originally Posted by SassyLady View Post
    I'm 69 and I've had investments since I retired and I live off the interest. Keeps me from spending it foolishly. Of course part of that lump settlement would be given away to people i care about and organizations I care about. I would probably die before I received the total annuity.
    Lottery winners tend to spend foolishly because they didn't know how to manage money before and receiving lump sums didn't change their ability to manage it. You might have different reasons.
    "when socialism fails, blame capitalism and demand more socialism." - A friend
    "You know the difference between libs and right-wingers? Libs STFU when evidence refutes their false beliefs." - Another friend
    “Don't waste your time with explanations: people only hear what they want to hear.” - Paulo Coelho


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    Default So You tell us fj1200...

    Quote Originally Posted by fj1200 View Post
    Sounds about right. It's called taxes.



    Except that lottery winners have an awful track record of taking lump sum payouts. They should take the annual because they're largely incapable of handling that much money.
    How many Lotteries have you won? And then tell us about a track record and how you have determined it applies to "ALL"???
    I may be older than most. I may say things not everybody will like.
    But despite all of that. I will never lower myself to the level of Liars, Haters, Cheats, and Hypocrites.
    Philippians 4:13 I Can Do All Things Through Christ Who Strengthens Me:

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  13. #8
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    Quote Originally Posted by icansayit View Post
    How many Lotteries have you won? And then tell us about a track record and how you have determined it applies to "ALL"???
    Zero.

    Here’s why lottery winners go broke


    Didn't mean to imply "all." My apologies.

    I disagree with state-sponsored gambling.
    Last edited by fj1200; 01-26-2021 at 05:02 PM.
    "when socialism fails, blame capitalism and demand more socialism." - A friend
    "You know the difference between libs and right-wingers? Libs STFU when evidence refutes their false beliefs." - Another friend
    “Don't waste your time with explanations: people only hear what they want to hear.” - Paulo Coelho


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    Quote Originally Posted by fj1200 View Post
    Lottery winners tend to spend foolishly because they didn't know how to manage money before and receiving lump sums didn't change their ability to manage it. You might have different reasons.
    I have degree in accounting so I think I know how to manage money. I have bought lottery tickets. So, your premise is flawed.
    Last edited by SassyLady; 01-26-2021 at 11:09 PM.
    If the freedom of speech is taken away
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    like sheep to the slaughter.


    George Washington (1732-1799) First President of the USA.

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    Quote Originally Posted by SassyLady View Post
    I have degree in accounting so I think I know how to manage money. I have bought lottery tickets. So, your premise is flawed.
    My premise is statistics, human nature, and behavioral economics. I have an MBA in finance and economics and means very little in managing money. There are countless accounting and finance majors in bankruptcy.

    All that said, your mileage may vary. May we both buy one lottery ticket for a billion dollars and walk away with the after tax portion.
    "when socialism fails, blame capitalism and demand more socialism." - A friend
    "You know the difference between libs and right-wingers? Libs STFU when evidence refutes their false beliefs." - Another friend
    “Don't waste your time with explanations: people only hear what they want to hear.” - Paulo Coelho


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    Quote Originally Posted by fj1200 View Post
    Zero.

    Here’s why lottery winners go broke


    Didn't mean to imply "all." My apologies.

    I disagree with state-sponsored gambling.
    Agree with the bolded.

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    Quote Originally Posted by Tyr-Ziu Saxnot View Post
    Think this is right? Think again....-Tyr




    Federal and state government took over half...
    Amount went from a bit over ONE billion down to less than half at 434.5 million.

    Over half went to government but remember the ffing lousy dems think we aren't taxed enough!

    The winner never was A BILLIONAIRE.

    To ever win a billion dollars one would have to win a jackpot at about 1.75 billion. -Tyr

    I take comfort in the knowledge that the Biden government and the State of Michigan will spend the money wisely.


    After the game, the king and the pawn go into the same box - Author unknown

    “Unfortunately, the truth is now whatever the media say it is”
    -Abbey

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  21. #13
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    Quote Originally Posted by Abbey View Post
    I take comfort in the knowledge that the Biden government and the State of Michigan will spend the money wisely.


    As do I..

    Biden has ALREADY- started destroying agreements this nation has with our allies.
    While he obeys China and other hostile foreign interests.
    This is what one gets when voting in a totally dishonest, liar and corrupt idiot..-Tyr
    18 U.S. Code § 2381-Treason Whoever, owing allegiance to the United States, levies war against them or adheres to their enemies, giving them aid and comfort within the United States or elsewhere, is guilty of treason and shall suffer death, or shall be imprisoned not less than five years and fined under this title but not less than $10,000; and shall be incapable of holding any office under the United States.

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  23. #14
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    Default But....the really sad thing is...

    Obviously....Joe has No Idea what, or why he signed anything.

    I may be older than most. I may say things not everybody will like.
    But despite all of that. I will never lower myself to the level of Liars, Haters, Cheats, and Hypocrites.
    Philippians 4:13 I Can Do All Things Through Christ Who Strengthens Me:

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