hi,
just curious, say someone won a 50 million dollar lottery in nj, what would they get after taxes, what would the final check be? And i know they usually tax you right away and then give the check, but what about the next year when you get money from bank interest on the winning, those will also be taxes a lot right?
2007-07-27 04:37:01 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
What I've generally seen with the lotteries, is that the person ends up with about 35% of their original winnings after taxes if they take the lump sum option. That money is then tax-free forever. So for winning $50 million, they would end up about 17.5 million. And, if they put that money in the bank, what they earn in bank interest would be taxable in the next year.
2007-07-27 04:40:48 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The Federal Income withholding for gambling is dependent on the type of gaming. The range is from 25% to 28%. For a lottery winnings the rate would be 25%. If the state in which the lottery is run has income tax they will also have withholding rules. If you were to have a large lottery winnings you would also have an estimated tax issue. That would likely push the amount to a total of 35% for Federal income tax and in most states close to 10% for the state income tax.
In interest that would be made on the winnings would be subject to the same tax in the year it was earned.
One other issue is that a $50M is not really $50M. The lum sum pay out is generally far less.
2007-07-27 05:12:04 · answer #2 · answered by ? 6 · 0⤊ 0⤋
50 Million Lottery
2016-12-17 19:58:44 · answer #3 · answered by fletes 4 · 0⤊ 0⤋
If a person won $50 million on the lottery, their federal income tax would total just under $17.5 million. Most states do not levy state income taxes on winnings on the state lottery.
Any income from the winnings would be taxable in the year made.
2007-07-27 11:56:13 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
they will get about 35million. From most of the stuff I have read you get about 65% of the lotto amount. That is if you get the cash option. Florida has an option where they divide it over 20 years and give you installments and you get more money that way but it takes forever to get it.
Edit:
Example*: If the New Jersey Lottery estimates a jackpot of $11 million, the approximate Lump-Sum cash value is $6.3 million.
2007-07-27 04:42:30 · answer #5 · answered by czwtrpolo2 2 · 0⤊ 0⤋