How Much Do You Take Home?


 

 

Well the Mega Millions lotto in USA has reached the jackpot of $950 million – Imagine. 

Would that amount make you happy. I certainly would give it a good try. I remember going to a financial  seminar a few years ago and the speaker was saying how money does not necessarily make you happy but – It would be better crying in the back of a Rolls-Royce than crying in the back of a VW. My grandkids of course would prefer the VW only because of the make of vehicle not the lack of money.

Anyway don’t imagine for too long as you do not get the whole $950 million so the imagining will be cut short by a few million as Uncle Sam has to get his bit.

After taxes you can take it out in one lump sum or you can pick the annuity option.

Annuity after a 24% federal tax your payment comes out to $US24,573,333 per year for 30 years. (I’m thinking “will I be around in 30 yrs?”)

The Lump sum comes to $416,936,000 (this is all calculated on winning $950 Mill)

Then there is State taxes – California and Delaware levy no tax on Lottery earnings – means more money in those states. Now if you live in New York there is an 8.82 State taxes. Annuity $2,851,800 Taxes in NY and you end up with $US21,721,533 (30  payments of you get $651,645,990. Lump sum $US368,549,480.

So depending on how you get your winnings wether it be Lump sum (then you lose apron 2/3rds depending on what State you live in) or annuity (then you lose approx  1/3rd (depending on what State you live in)

So between Uncle Sam plus the State Government taxes your winnings are basically approximately cut in half. On saying that its one heck of a lot of money. As much as I don’t approve of Governments stealing our money it would take me some time to get through that many millions (I Think)

Good Luck to Those Who Have Bought Tickets and that includes me 🎉🎉🎉

Read More on this it is interesting

 

 

 

 

 

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