topic Re: Only One in Community Chat

Only One

gertrudecloset — Tue, 08 Nov 2022 23:12:17 GMT

ticket holder in California won that big jackpot. Goodness gracious it's worth 2.04B dollars. Oh well. I can't miss something I never had. *crying like a dog*

The location where the ticket was sold has received a $1MM check (their cut), but the owner of the winning ticket has not come forward as yet.

This person will have a very grand Holiday season, I suppose.

Re: Only One

justashopper — Tue, 08 Nov 2022 23:16:22 GMT

I do like to day dream about how many people I could help with money like that. It is amazing to think one winner! WOW

Re: Only One

gertrudecloset — Tue, 08 Nov 2022 23:20:50 GMT

@justashopper wrote:
I do like to day dream about how many people I could help with money like that. It is amazing to think one winner! WOW

When the tax man cometh it won't be nearly as much, but still enough to do some good with it (depending on how they winners want it disbursed).

Re: Only One

justashopper — Tue, 08 Nov 2022 23:26:44 GMT

@gertrudecloset yes... I saw on the TV after the federal tax and depending on your state tax, the one time pay out option could be around $440,000,000.00

Purposely put the zeros.. LOL> I would not sneeze at it. That's for sure.

Re: Only One

Still Stylish Lady — Tue, 08 Nov 2022 23:29:35 GMT

DH won $7000 on the Florida Lotto once. Uncle Sam took $1500 for his cut. Just like the mob.Such huge winnings would really complicate your life. Many times it doesn't end well for winners.

Re: Only One

gertrudecloset — Tue, 08 Nov 2022 23:30:31 GMT

@justashopper wrote:
@gertrudecloset yes... I saw on the TV after the federal tax and depending on your state tax, the one time pay out option could be around $440,000,000.00

Purposely put the zeros.. LOL> I would not sneeze at it. That's for sure.

@justashopperThat's way more than half of the winnings. Geez. $440MM from almost 2.1 B. A lot of tax taken. That means over 1B of the winnings will be taken.

Re: Only One

justashopper — Tue, 08 Nov 2022 23:34:08 GMT

@gertrudecloset It sure is!! That amount was quoted when the jackpot amount was $1.9B. So does mean more or less winnings! LOL

Re: Only One

gertrudecloset — Tue, 08 Nov 2022 23:33:27 GMT

@Still Stylish Lady wrote:
DH won $7000 on the Florida Lotto once. Uncle Sam took $1500 for his cut. Just like the mob.Such huge winnings would really complicate your life. Many times it doesn't end well for winners.

Hiya @Still Stylish Lady . Girl after my own heart who loves leather! LOL.

Good to see you. I watch that program "The Lottery Ruined My Life" and everyone depicted on that show did in fact have a lot of problems after winning all that money. Bad decisions, fear of people stealing from you and so on. The idea of doing good with it might be the best thing for some people because if they give it away, they minimize their own problems.

Re: Only One

gertrudecloset — Tue, 08 Nov 2022 23:34:58 GMT

@justashopper wrote:
@gertrudecloset It sure is!! That amount was quoted when the jackpot amount was $1.9B. I think it got higher since then. So does mean more or less winnings! LOL

It really blows my mind about how much they would take......

Windfalls are not taxed like ordinary income that's why. I remember when I got bonuses at my work, how much they taxed the heck out of it. It was better they take than for me to have to pay them at the end of the year @justashopper

Re: Only One

kate2357 — Tue, 08 Nov 2022 23:36:18 GMT

@Still Stylish Lady wrote:
DH won $7000 on the Florida Lotto once. Uncle Sam took $1500 for his cut. Just like the mob.Such huge winnings would really complicate your life. Many times it doesn't end well for winners.

@Still Stylish Lady

I totally agree that winning that amount of money would really complicate someone's life. Who do you trust to know you won a million dollars or in this case 2 billion dollars? 🤔

I live a pretty simple life and I am very happy with what I have and have never, ever wanted to be ultra wealthy.

Re: Only One

occasionalrain — Wed, 09 Nov 2022 00:09:16 GMT

Often a group goes together to buy tickets, so there could be more than one winner. Does California require the winner's name be made public?

Re: Only One

San Antonio Gal — Wed, 09 Nov 2022 00:15:32 GMT

@justashopper wrote:
I do like to day dream about how many people I could help with money like that. It is amazing to think one winner! WOW

I think of all the animal shelters I could help @justashopper .

Re: Only One

CatsyCline — Wed, 09 Nov 2022 00:21:49 GMT

@occasionalrain CA no anonymonity. they have to come foward. if thye're smart they get an LLC set up. and have a representative accept the jackpot.

Re: Only One

occasionalrain — Wed, 09 Nov 2022 00:27:37 GMT

OMG California, what if Harry and Meghan won?

Re: Only One

MarieIG — Wed, 09 Nov 2022 00:46:57 GMT

I do wish the winner or winners that good comes to them as a result of the winning.

While I would not turn down a lottery winning, and would imagine that there would be a brief moment of euphoria, I would also imagine that at least for me, this would also come with a great deal of responsibility.

Re: Only One

Mz iMac — Wed, 09 Nov 2022 01:23:48 GMT

They have not come forward yet because more than likely, they are too busy getting their ducks (financial team) in order. On the news they said, in California it may take months for the winners to come forward. They have 1 yr to claim the $$$$$$$$$$$$$.

Of course I called my relatives/family in Cally. Since they answered their phone(s), I know it wasn't them!

===========================================

I'm not like yall! If I was the winner, the first year I would "rent" six 3 bedroom condos & "purchase" one 3 bedroom condo for myself on the MS The World & cruise around the world for 1 yr while getting "the rest of my ducks together." In the meantime, I would have already dished out $$$ equally among my immediate family (w/a note, blow this don't come back to me for more).

MS The World is a private residential cruise ship operated like a condominium complex, with large apartments that can be purchased. The residents, from many countries, can live on board as the ship travels. Some residents choose to live on board full-time while others visit periodically throughout the year. The ship is operated by ROW Management, Ltd., headquartered in Fort Lauderdale, Florida, United States.

Re: Only One

NYCLatinaMe — Wed, 09 Nov 2022 01:48:05 GMT

@gertrudecloset wrote:
@justashopper wrote:
@gertrudecloset yes... I saw on the TV after the federal tax and depending on your state tax, the one time pay out option could be around $440,000,000.00

Purposely put the zeros.. LOL> I would not sneeze at it. That's for sure.
@justashopperThat's way more than half of the winnings. Geez. $440MM from almost 2.1 B. A lot of tax taken. That means over 1B of the winnings will be taken.

The deductions are not just tax, they are also assumed interest. The advertised jackpot of $2.1 billion is the total payout over 29 years (30 installments). If the winner wants to get paid the whole thing TODAY, they receive what it would cost TODAY to buy an annuity that would pay $2.1 billion over 29 years, like one may buy from an insurance company. Because interest rates are high now, the assumption is you need less money today to get to $2.1 billion over 29 years, so the payment is lower than when interest rates are lower. Then they take the taxes on that reduced amount.

Re: Only One

gertrudecloset — Wed, 09 Nov 2022 03:30:31 GMT

Whether you’ve won the Super Lotto, Mega Millions or Powerball lotteries, the way the jackpots are paid are the same. Each major prize is paid in 30 graduated annual installments by default. California does not charge state tax on these winnings, and there are no local taxes, but federal taxes are withheld from the annuity checks. Keep in mind that although the lottery winnings are not subject to California state tax per se, winners may find themselves liable for local and state taxes based on their overall annual income.

There is an exception to the general rule that lottery winnings are not subject to California taxes. If you purchased your winning ticket out of state, you will have to pay California state taxes on the amount.

Lottery officials urge winners to obtain legal advice and consult a tax professional after claiming their prize. By law, the name of Cali Lottery winners is public information, so you may find yourself with a lot of new best friends. The winnings will change your life irrevocably, so make sure you seek out sound financial management.

Winner’s Payment Choices

Lottery winners don’t have to settle for the annual payment. They can decide to take the cash option, which is less than the jackpot amount. That’s because the jackpot amount is based on the state government investing the money and the winner receiving the annual annuity. At the end of 30 years, the amount will equal the announced jackpot.

If you’re concerned that you may not live another 30 years, that’s not necessarily a reason to choose the cash option. If the winner dies, their estate should contact the CA Lottery so that annual payments are made to the winner’s beneficiaries.

You can designate beneficiaries beforehand by filling out the Lottery Beneficiary Designation obtained from the lottery’s prize payment annuity desk. You can change beneficiaries at any time simply by filling out another form. Winners who do not fill out such forms will have their payments made to beneficiaries either by court order or via established lottery procedures.

Federal Taxes on Lottery Winnings

If you win big in 2018, the federal tax bite is a little less than in previous years because of the Tax Cuts and Jobs Act, signed into law by President Donald J. Trump on Dec. 22, 2017. It lowers the highest tax bracket, which you are probably now in, to 37 percent.

Since CA Lottery withholds 25 percent of the winnings for U.S. citizens and resident aliens who provide a social security number (28 percent of the winnings for U.S. citizens and resident aliens who do not provide a social security number) for the IRS, you’ll have to pay the remaining 12 percent (or 9 percent if you don't provide a social security number) at tax time.

Report your lottery winnings from Form W-2G as "other income" on Line 21 of Schedule 1 (1040), including any winnings that are not reported on W-2G. If you have no adjustments to income on Line 36 of Schedule 1, transfer the total on Line 22 (which includes your lottery winnings on Line 21) to Line 6 of Form 1040.

The IRS should mail all big winners of lotteries the Form W-2G by Jan. 31, 2019.

Re: Only One

gertrudecloset — Wed, 09 Nov 2022 03:31:08 GMT

@Mz iMac, the person[s] might not even know they've won yet too.

Re: Only One

gertrudecloset — Wed, 09 Nov 2022 03:33:36 GMT

@NYCLatinaMe wrote:
@gertrudecloset wrote:
@justashopper wrote:
@gertrudecloset yes... I saw on the TV after the federal tax and depending on your state tax, the one time pay out option could be around $440,000,000.00

Purposely put the zeros.. LOL> I would not sneeze at it. That's for sure.
@justashopperThat's way more than half of the winnings. Geez. $440MM from almost 2.1 B. A lot of tax taken. That means over 1B of the winnings will be taken.

The deductions are not just tax, they are also assumed interest. The advertised jackpot of $2.1 billion is the total payout over 29 years (30 installments). If the winner wants to get paid the whole thing TODAY, they receive what it would cost TODAY to buy an annuity that would pay $2.1 billion over 29 years, like one may buy from an insurance company. Because interest rates are high now, the assumption is you need less money today to get to $2.1 billion over 29 years, so the payment is lower than when interest rates are lower. Then they take the taxes on that reduced amount.

Oh, excellent info @NYCLatinaMe . Makes perfect sense to me.