As I understand it, lotteries and gaming are privately run in the US. So the tax is how the government makes money off them. In Canada, winnings aren't taxed because lotteries and gaming are run by government agencies. They already get 100% of the profits. About the only thing we aren't taxed on come to think of it. Gaming has become a huge cash cow. Too bad your average folk like me rarely see the benefits.
As I understand it, lotteries and gaming are privately run in the US. So the tax is how the government makes money off them. In Canada, winnings aren't taxed because lotteries and gaming are run by government agencies. They already get 100% of the profits. About the only thing we aren't taxed on come to think of it. Gaming has become a huge cash cow. Too bad your average folk like me rarely see the benefits.
As I understand it, lotteries and gaming are privately run in the US. So the tax is how the government makes money off them. In Canada, winnings aren't taxed because lotteries and gaming are run by government agencies. They already get 100% of the profits. About the only thing we aren't taxed on come to think of it. Gaming has become a huge cash cow. Too bad your average folk like me rarely see the benefits.
Yep. Odds are much better at most casinos than they are with the state run lotteries. And there ain't naked chicks dancing over your head at the convenience store.Some are privately run, but are always state(or multi state) sponsored. Even if they didn't tax the winnings, each ticket pays a cut to the participating states, and IIRC, it's already more than 50%
Red Squirrel, just buy two tickets with the same number, double your winnings, give the govt half and you still walk away with a cool half billion. ()
We doan need no steenking PMs!PM's work
Folks, don't forget that after you pay 35% for the Fed, you will have to pay your local and state income tax (maximum rate) on top of that 35%. Unless you live in 5 states with no income taxes and the two states that don't tax lottery winnings (CA and PA).
Vivi - I sent you my $5 via Amazon. Good luck dude.
Good point. Many people forget about this. Which is why an accountant and/or lawyer is always good upon lottery winning sto make sure all funds payable to the government has been set aside.
Advantage to lump sum? You have to do this once.
With the 25-30 year plan, you have to pay this extra price every year for 25-30 years. (However you get more in the long run)
Folks, don't forget that after you pay 35% for the Fed, you will have to pay your local and state income tax (maximum rate) on top of that 35%. Unless you live in 5 states with no income taxes and the two states that don't tax lottery winnings (CA and PA).
Yes, you would get more but don't forget the main killer in the 25-30 years period, INFLATION.
So if you won could you move to PA on say Dec 31st and then claim the Prize on Jan 1 as a PA resident?
I don't think you can do that. You pay the applicable state tax at where you lived when you purchased the ticket.
With the 25-30 year plan, you have to pay this extra price every year for 25-30 years. (However you get more in the long run)
I had the same question. Now, suppose instead of lump sum, you took the 20 year payout - in that case, if you moved after the first year, would you still have to pay state tax from your original state? Just trying to plan ahead for when I win. I might be able to get a bigger return by taking it over 20 years, keeping in mind that I'm not paying 5% or whatever it is to NY (which means that right off the bat, I'm earning more than 5% on the money that I would have otherwise had.)
What is unclear, according to Cobern, is whether a New York City resident who wins a big jackpot can move from the city, take annuity payments, and avoid the city tax on them—the city might assert that it still has a right to its cut, since the winner was a resident at the time of his big score.
We doan need no steenking PMs!
I have followed the double secret instructions to the letter and executed the transfer. I plan on building a new home if we win and shall name it 'Vivi The Mansion'.