2006-09-06 08:15:15 · 6 answers · asked by j did it 1 in Business & Finance ➔ Taxes ➔ United States
It would depend depending on the source of the income and if it was distributed in one lump sum and where you reside.
If that was the prize on the lottery and you got the cash value option you would get about $4.5 million as the $10 million includes interest over the 26 years. The come federal taxes which would reduce it to $3 million and then come state and city taxes which could redcue it between 0 and $500k to $2.5-3 million.
If you took the annuity payments over the life of the lottery (26 years) then the taxes would be lower as more of it would fall into the lower brackets.
If it was an insurance settlement it could be free from taxes if it was for actual damages sustained by you, if it was punitive or any amount above the damages sustained by you would then be taxable.
It is straight income, then another 2% would go medicare and then there is social security (6.7 or 13.4% depending if you were self employed) which would apply for the first $94000.
If it is a life insurance settlement it might not be fully taxable either.
So in short it depends consult a tax advisor as there are ways to reduce the taxes legally
2006-09-06 08:28:45 · answer #1 · answered by ken 3 · 1⤊ 0⤋
In taxation there is a universal answer that always seems appropriate. That depends. It would depend on how the income was derived, what state you live on and countless other factors. All that aside, lets assume it was a lottery winning. That kind of income would put you in the highest US federal tax bracket of 35% so thats 3.5 million dollars you will have to withhold for taxes. State taxes would vary on what state you live in but here in Virginia that kind of income would be taxed at another 5.75% so thats another $575,000 gone to taxes. So out of the $10,000,000 your looking at bringing home $5,925,000.
2006-09-06 08:28:36 · answer #2 · answered by newhouse 3 · 0⤊ 0⤋
It depends. If it's a 10 million lump sum, you get $10,000,000 minus taxes. If it's a monthly or annual reward, you will get 10M over the repay period. Usually, you can get a lump settlement for that amount, but it will be much less than the 10M.
If you got $10M in a lump sum, the taxes (in the US anyway) would be $3,479,860.50, meaning you got $6,520,139.50
If you get $10M over 30 years, for example, you'll receive $333,333.33 per year before taxes, or $236,741.83 after taxes. (It may go up or down over time depending on the current tax rates)
2006-09-06 08:29:17 · answer #3 · answered by MadScientist 4 · 0⤊ 0⤋
Compare rates free
2015-02-10 05:50:36 · answer #4 · answered by Laverna 1 · 0⤊ 0⤋
ten million dollars i guess
2006-09-06 08:20:56 · answer #5 · answered by alias16 2 · 0⤊ 0⤋
a little less than half that after taxes.
2006-09-06 08:21:41 · answer #6 · answered by cynthetiq 6 · 0⤊ 0⤋