-
Ever wanted an RSS feed of all your favorite gaming news sites? Go check out our new Gaming Headlines feed! Read more about it here.
-
We have made minor adjustments to how the search bar works on ResetEra. You can read about the changes here.
The MegaMillion Jackpot is at 340 Million Dollars which is roughly 120 Million after all taxes
- Thread starter Anthony Mooch
- Start date
- Status
Some states vary on how much they keep but roughly 1/3 of the price of the ticket is kept by the state. The rest is spent on the payouts and paying for the small expense of running the lotto.
Now when we leave state run Lottos and start looking at Gambling on actual events like NFL and casino gambling things change a bit. While I can't speak about the NFL as sports gambling is still illegal in my state. For Casino winnings I believe after you win around 1,000 dollars the Casino will deduct 25% of your winnings for state and Federal taxes. Anything less than that amount will not be taken by them and it will be up to the gambler to report the winnings through an income statement.
Last edited:
You're assuming that people are only buying one, I work at a gas station and I've had people get hundreds dollars worth.
Since you'll probably know, about what percentage of people buy more than $10 worth at a time. I figure that would be the most an average person would get, as I think with powerball anyway only 5 fit on one sheet you can fill out. So mega millions might be the same.
I'd take 40 and divide it between my immediate family. I'd blow like 15 just doing stupid shit. Id try to buy as much property in Brooklyn, NY before they're gone. I'd also get two girlfriends and get em pregnant.
Yeah, there are some people out there definitely addicted to the lottery. I can see it - it gets fun just thinking about the endless possibilities of what you could do if you won.
However for most of the people in this thread, buying a ticket the three or so times a year the jackpot gets huge is not an issue.
Agree. I'm one of those that don't often buy a ticket. I've bought one maybe 15 times in the 11 years I've been old enough to buy one. Though I usually buy two at a time. Still, its not that much money.
But its fun. And someone is going to win eventually. There is a very, very, extremely small possibility that it could be any one of us.
Well, someone will win. I'd rather throw away $2 once a week with the small chance of being that person and being able to do everything I've ever dreamed of than not at all.
We all know it's unlikely. Not a big deal.
You're right, the $2 is not a big deal. Personally, I can't help but spend my time daydreaming and planning how I'll spend that jackpot, so the inevitable losing ticket is just a bummer.
I'm totally not going to buy a ticket on my way home.
OP
OP
I only buy a lottery ticket when the grand prize is larger than the odds
so thats 300 million which apparently is like once every 3 months now for 2 weeks till some person in a fly over state wins
so thats 300 million which apparently is like once every 3 months now for 2 weeks till some person in a fly over state wins
A 20 year old Florida man won a $450 million jackpot in January. But anecdotally speaking, older people buy more lotto tickets.
I'd stay anonymous as long as I can, invest some of it here, pay off student loans, get a new car, put alot of it away in trusts and retirement and probably quit my job. I have small family and not much else outside work.
Move somewhere else, pretend I'm a small business owner and live modestly.
I have friends say they'd share it with close friends, including me, but I highly doubt it. I'm usually the one that gets hosed in friend related deals so it's far easy for me to say no these days.
Move somewhere else, pretend I'm a small business owner and live modestly.
I have friends say they'd share it with close friends, including me, but I highly doubt it. I'm usually the one that gets hosed in friend related deals so it's far easy for me to say no these days.
Its more about compound interest. Investing you winnings now and only touching the gains is better over the years than getting the drip feed payments and doing the same.
Same reason you're supposed to dave as much as you can into a 401k early; later you dint have time / compounding intrest.
I was thinking... Is there really no advantage to annuities? The way I see it, most of the people who took the lump sum fucked themselves over, sometimes fatally. Having all the money available at once appears to be simply too much for most of the winners. It increases the chance of said individual catastrophically losing their winnings.
An annuity allows you to fuck up completely one year, then hit the reset button come January 1. Also, having an annuity allows you to at least attempt to (legally) cheat the US tax code, like all the rich fuckers do. By taking the lump sum the government has already extracted their pound of flesh from you.
An annuity allows you to fuck up completely one year, then hit the reset button come January 1. Also, having an annuity allows you to at least attempt to (legally) cheat the US tax code, like all the rich fuckers do. By taking the lump sum the government has already extracted their pound of flesh from you.
Last edited:
A shockingly huge number of lottery winners end up broke in less than a decade, the problem is everyone tells the winner that taking the lump sum is their best option, which it is ***if*** the winner has some basic investing and money management skills. The "best" option if a person is not very financially literate is probably to take the lump sum and put it in something very low risk/return for a couple years while they learn how to manage their new wealth.
I pay $2 for the fantasy
And there's a difference between almost statistically impossible odds and literally impossible odds
Only works for people that are very very very bad with money.
Figure an 8-10% return on the market every year and your nugget will be far bigger. Also future cash flows are inherently worth less due to inflation.
Plus annuity income might be taxed at your marginal rate? I believe capital gains taxes are more around 20%.
And there's a difference between almost statistically impossible odds and literally impossible odds
Only works for people that are very very very bad with money.
Figure an 8-10% return on the market every year and your nugget will be far bigger. Also future cash flows are inherently worth less due to inflation.
Plus annuity income might be taxed at your marginal rate? I believe capital gains taxes are more around 20%.
Even with the taxes, that's enough money for me. I can only buy so much clothing (my main fix) and I only need one car.
Rich people get tax breaks out the wazoo but god forbid a poor person chance themselves into a fortune. Gotta make sure they pay their share /s
ITT: Taxation is theft.
But seriously, I would invest everything and live off the returns. I'd also try to keep it secret as long as possible.
But seriously, I would invest everything and live off the returns. I'd also try to keep it secret as long as possible.
It's gambling winnings from a third party, not a government lottery.
Should all gambling winnings be non-taxable?
I think State run lottos are different tax wise in those States; but you'd still deal with the feds because the State is a third party according to them. "Mega Millions" is neither a State or Federal org so unless a State has some specific law about not taxing gambling winnings you are going to pay taxes (or a State has no income tax.)
Can you play the lottery in the States as non American?
You guys tax gifts? Here in Canada there is no limit to the size of personal gifts and it's tax free. Jesus, and some of your right wing citizens complain about our "socialist" taxes lol.
Last edited:
But aren't most winners so disastrously bad with money that taking the annuity would have been the more prudent option, regardless of potential efficiency losses?
True, but with the lump sum there's always the risk of you spectacularly fucking up and losing everything within a decade. After all, it's what happened to most winners, regardless of their previous socioeconomic status (rich people ended up poor, poor people ended up poor... again). Personally, I'd be willing to accept the losses for that extra security.
Isn't it income from financial instruments? IIRC the annuity income comes from bonds and other such fixed financial devices. Can't someone pull the typical accounting magic rich people's accountants do and make it vanish?
The taxes on lottery winnings aren't any higher than normal income. The reason the lump sum is lower is because your winnings are actually an annuity with cumulative value equal to the advertised jackpot.
It has to do with the concept that a dollar today is worth more than a dollar in the future. The further into the future you go, the less a dollar on that day is worth. The lump sum of a lottery is the sum of every dollar you earn each year, with that devaluation over time factored in.
For those saying that you'd rather take the lump sum and invest it: that's exactly what an annuity is, except that there is almost no risk, and you can't pull out early. It's possible that you'd be able to get a higher rate of return by investing it yourself, but then you actually have some level of risk to contend with.
It has to do with the concept that a dollar today is worth more than a dollar in the future. The further into the future you go, the less a dollar on that day is worth. The lump sum of a lottery is the sum of every dollar you earn each year, with that devaluation over time factored in.
For those saying that you'd rather take the lump sum and invest it: that's exactly what an annuity is, except that there is almost no risk, and you can't pull out early. It's possible that you'd be able to get a higher rate of return by investing it yourself, but then you actually have some level of risk to contend with.
I like this idea. Although I'd pay them out monthly so they couldn't spend it all at once
If they lose All the money then fuck em
OP
OP
Jackpot drawing is tonight at 11pm EST you can buy your tickets till 1 hour before.
I have no idea about online buying i didn't even know that was a thing
I have no idea about online buying i didn't even know that was a thing
OP
OP
you should do it all at once within the same tax year, I think the lifetime limit for giving away without being taxed is 10 million
idk about buying them online but many places now have those touch screen vending machines that you can buy them out of, those are handy.
How the hell is there a 60% tax on lottery winnings?
Why not just post what the ACTUAL Jackpot is AFTER taxes?
The $350 million number is NEVER getting into anyone's pockets. Why advertise that?
Why not just post what the ACTUAL Jackpot is AFTER taxes?
The $350 million number is NEVER getting into anyone's pockets. Why advertise that?
I know exactly how to spend the money on myself but dunno how I'd give any to my siblings and Mom without the rest of my family's toxic asses finding out. I'd probably start a small business and pretend I'm giving money gained from that to mitigate the backlash somewhat.
Last edited:
I'd burn it on YouTube live like I was the Joker in The Dark Knight and live off the ad revenue.
- Status