You pay for it by the government taking half the prize pool as tax before the rest is distributed. That's why your jackpots suck compared to our jackpots.
@@MegaBallPowerBall Look at our population. Ik its 2 years ago you posted this message but our recent one was 65 million and divide the population of our countries to get a multiple of like 8.5.. Multiply the two and you get around 500 million.
Top prize is paid out over 29 years. Both the top prize and cash option totals are before taxes. Federal tax rate is 37% and state tax depends on where you win the prize.
@@sheezamann2724 Ummm... Yes. If you offer to sell me your car for 10,000 and I agree, and take possession, are you going to let me pay you over 29 years (no %). Why not? you are still getting your full 10K? The other big lie (in California)was that it would bring more money to schools. Sure it brought a billion dollars to the schools but then they just cut the existing budget by a billion so there was no net gain and they now had an extra billion that politicians could use to buy more votes with their targeted handouts etc. government in general is dishonest, and worse than the mob in that in runs the biggest ponzi in history (social security).
@@alanaldpal950 except that u pay $2 for the car with a chance of winning. The lottery company doesn't owe u anything. You willingly buy a ticket in hopes of having that $2 investment multiply by 10000%.
Here's a question. What if you bought your lotto ticket in Pennsylvania, or any other state that doesn't charge state taxes. Would you still have to pay taxes on your winnings in New York because you live there?
U pay taxes by the state you purchased in so if u live NYC but purchased in texas u have no state tax and u can also claim anonymous because you would be under texas rules
@@mnight207 It's not bad really and people make way more of the taxes we pay than it is. I have family that moved from here to there and what you make to cost of living is right about the same.
Ouch with the taxes. Here in the UK the winnings are tax free, also we don't have all the separate State, Federal, or local taxes. The only taxes ( The UK equivalent of your Federal taxes) to be paid on any winnings are only on the interest accrued in the Bank as they are classed as earnings, which will be 40% or there abouts of the interest earned.
The root of the problem is government spending not taxes. Even with the excessively high tax burden placed on Americans, the government still manages to dig itself deeper in debt.
In 10-15 years with wise investments and financial plans I'm pretty sure one can recover almost all the money he had paid in the form of taxes during the collection of Jackpot 🎉🎉🎉🎉 I always see the glass half full
No…that’s not true, in California, despite its high income tax, lottery winnings are not subject to state taxes, CA is one of ten US states that do not charge an income tax on lottery winnings
Yes, as she said. After everyone pays national tax/ IRS/ Federal tax currently for these jackpots it's at 39.6%. Most states have further state income taxes. It depends non where you buy the ticket. Not where you live. About 10 states do not charge any income tax including: Texas Wyoming Tennessee Florida Washington state Delaware New Hampshire Plus Puerto Rico and Virgin Islands I think still don't charge taxes on winnings If you live in NYC then you are screwed with further taxes on top of state income tax which is already high at nearly 9%. NYC winners pay a further city and county tax too. If you live in NYC on a big jackpot it's worth traveling to New Hampshire or Delaware buying a ticket and saving your self vabout 15% in tax. So basically 2 different people can split a jackpot but depending on where you buy the ticket. So it's best to find out which stat doesn't state income charge for winnings and doesn't charge income tax on winnings not people from other states buying tickets
The lottery is a prize and shouldn't be taxed at all, through a petition you can get it put on the ballot to be voted on by the people to have the tax removed, and I'm sure it would be voted out.
Why advertise what the lottery jackpot amount is if you never get that amount, wouldn't that be the same if I advertise selling meat for $1.00 a pound but when you get it its only half pound, wouldn't I go to prison for that?
Lake Martin Just think that the so called forefathers of the U.S. were willing to die and fight against a 3% tax that the British were trying to squeeze out of them, hence the Boston tea party. 😞
I can understand the Federal income is mandatory and state income that varys per state.. But the local (city) tax man receive's a cut as well? I thought that local taxes were collected for business like Taxi cabs,night club owner's,restaurant's..etc.. Why do they deserve a dime...from lottery winner's anyway... The mayors office and city council member's are all lying "crooks" and they make way too much yearly income...! I would prefer to give to the elderly poor,human society,food banks,public schools for books,supplies and utility assistance for people who can't afford to pay a "electric bill,water or property tax"..
How did you think NYC Emergency gets its Funding for full time staffing compared to most other towns who have been switching over to volunteer departments.
I am the one who needs it, Ive worked hard all my life, no vacation no savings only bills....and a paid for used car....find me please, a million will do.
Martin Armendariz if you actually worked hard for your ENTIRE life then you wouldnt be in that situation. Stop lying to yourself and admit your errors, then try to work your way out. At this rate, your life will just be a shithole forever
Sorry, something doesn't sound "right".. The way you explained about the taxes seems as you pay it 'twice' over an amount already taxed. Or a something called "waterfall tax system".. So you win the lottery, for this amount of money, 35% will be the bracket, plus the state taxes if there is any, as you mentioned in NY they do tax lottery winners. Well, if the lottery doesn't cut it right away, you will be better ready to pay 35% by April of the next fiscal year. And that's it! So that's not your income, so the other following year, let's say you did some investments, then you will pay income taxes over "the profits/loss" of the investments, not the principal.
Yeah it is not that difficult to look up the current IRS tax bracket and rates per bracket, heck just search 'income tax in USA' on Wikipedia for the previous and current years max % and the difference in the brackets that get tax per each percentage. However some taxes can be a bit confusing for the uneducated and that is where the advisor or tax attorney comes into play for winners to be able to understand how to collect and get taxed less per the IRS/Federal Govt..
I have a question... So lets say I win a clean million in the lottery... After paying federal and state taxes, I decide to put it all (~500K) on a savings account and it will give me 10% each year in interest... Do I have to pay taxes on that?-
Well if you win a million after taxes and just put the money in the bank as long as it isn't stock market things you could make money.but it becomes taxable money.the next tax time rolls around and your taxed on your income,which is a million dollars.so it's bullshit
Over 75% of every dollar in the lottery is taxed. Government takes 50% right off the top. 29% goes to the winner the other 21% goes to smaller prizes. Anything over $599 is taxed. The winner pays about half of it to taxes (state and federal) and probably about a quarter of all other prizes is taxed. That is 14.5%- 17.4% (depends on state tax rate) + 5.25% (other prizes) + 50% (government off the top) = 69.75% - 72.65% where is the other 5.26% you are wondering. Almost all winners eventually lose or spend all of their money so they are charged capital gains on made money and a property/sales tax on spending. Now if you're not convinced that adds up to 5.26%. Well the other smaller prizes won are mostly rolled over onto another lottery ticket therefore taxed another 50%.
So it's a scam. Would you take the one off payment or periodic? I don't trust the US economy, i would cash out start businesses/venture capital off the interest.
Stamps600 im 3 years late but i thought i would tell you that your numbers are WAY off. Did you even watch the video? Thr top federal tax rate was 35%, not 50. And they take about 35-37% if you take the lump sum. All in all you get about 33-36% of the jackpot.
I am confused and hope to prepare a youtube video on the topic. receiving a lump sum payment versus getting paid over 30 years. on paper it makes sense to receive a lump sum payment but what most people forget is if you receive a lump sum payment and if you just make one poor investment decision or if you are swindled by a wife husband child relative or trusted lawyer accountant you can lose everything. you presume that every person in your family is honest and all investment advisors like those famous ones arrested or in jail like Bernie Madoff. if you do get ripped off or if you go on a crazy spending spree at least you know every year you have a huge check waiting for you. all these economists fail to grasp is most humans make poor decisions
*john doe* You and I are around the same figures. I calculates roughly 37.4%. So for every million dollars won, here in NYC i would get roughly 374K. For every $100 million I would get roughly $37.4 million dollars. Hey it's better than a poke in the eye!
If you started a business with someone but you put up all the money and the other person didn't contribute one penny, do you think that person sould be entitled to half the profit? And if you said no then that person put a gun to your head and said hand it over or else! There's a word for that, It's called armed robbery and that exact what the state does, no explanation other than they can.
This lady is not appreciative of what she wins. Yes, it could have been more. however, greed sets in when you win. If she does not want it, I will be happy to receive it.
any lottery winnings over whatever the retail amount is some winnings go to like $600 if its more than $600 you would need to go to the lottery customer service to claim your check
All this mathematicians, these number still don't add up. E.g, 24% fed tax off a $500,000,000 win is 120,000,000. Which leaves $380,000,000. You typical income bill of about 37% will set you back by $140,600,000. So, shouldn't you be going home with $239,400,000?. Why less? Assuming you live in Texas.
It's not a two dollar bet anymore if you've been playing for years, and if you never win which is likely, how much of that loss money is the tax man gonna cover?
Uncle Sam is not the United States. We've been led to believe this crock of shit. Uncle Sam is actually the Federal Reserve's, who is a private bank that was created by roughly around 13 families that "tax" the American people into believing that they need to pay them in order not go to jail. So in other words, they are a mafia that lends the United States our (well their) money to us & charges us interest & basically does whatever they want whenever they want through fear & ignorance & we just accept it. Read the book, "The Creature from Jeckle Island." These are all facts that I share. According to the usa Constitution and the Bill of Rights, the Government is suppose to be the people. But we don't think of ourselves as the Government. We think of a group of people that work in DC as our government. No, they work & represent us, nothing more or less.
😂😂😂 I’m sick of the charity bull they be spitting. A lot of charities profit off the money and don’t help the actual reason they started it. I’ll do my own charity work.
The economy is in the shitter. Pay the fucking taxes. It cost $2 to win $187m. Paying the tax put money into the economy to generate jobs and fund social programs, indirectly you'd be doing more good and you'd still have more money than the average person can spend.
ting280 saying you have plenty isn't an a good reason to talk half of your money. Many palayers spent their hard harned taxed money on tickets, sometimes their entire life. But of course our government want more than a fair percentage like always. Most of the time these are lower income people. Under 100k a year. The government wants to double tax everything they touch. It's because they spend money wrecklessly. Point is. I paid taxes. The government needs a flat rate tax max of 12 percent. They won't tax the rich at a high percentage than the middle class or poor. Because they want to keep them happy to stay here. So the already rich stay rich and the already poor will get less for being lucky.........
