Powerball dreaming. Annuity or Lump Sum

[kymom99]

I’m in on a lotto pool so I guess we would do the lump sum

 

[starry_solo]

Be careful. That's assuming that your state never goes bankrupt in a severe future economic downturn and defaults on lottery payments. There's no way to tell what will happen in our society over the next decades. And if you die in the near term, annuities are harder for heirs to collect from. A bird in the hand is worth two in the bush.

Also, in my state, lottery winners can elect to remain anonymous but only if they select the cash value option. If I were to ever win big in the lottery, I would definitely want to remain anonymous. I would avoid telling anyone except the people very close to me.

Unfortunately, my state doesn't let people be anonymous

But, the bankrupt issue is big. I think Illinois had to stop paying lottery payouts for a bit due to the lack of the state passing a budget!

 

[_19disnA]

No winners so we get to do it all again for Monday !!!

 

[disneychrista]

No winners so we get to do it all again for Monday !!!

Dang it. Guess I wasted my $2.

 

[Dan Murphy]

I won!! $4

 

[bcla]

If I’m Canada, I’d take the lump sum. We don’t pay tax on winnings so it would be fun to spread that around as much as possible.

It wouldn't work that way. At least for US residents (citizens and permanent residents) the IRS shaves a mandatory 25% off and that probably wouldn't cover the entire tax liability. Especially not state taxes, which many states don't withhold from lottery winnings.

If a Canadian bought US lottery tickets and won, that would probably be subject to a 30% withholding. And theoretically more than 30% due as taxes.

As a California resident, any winnings from the California lottery wouldn't be subject to state income tax. I think only a few states do that. So if I bought a Powerball ticket in another state and won, I'd be taxed for it by my state.

 

[_19disnA]

Was at the grocery store today and the lottery tickets are sold from a self-serve vending machine. However, the people in front of me had a list of manual numbers they wanted to use so that had to individually enter each one. After 15 minutes they were still at it, I have no idea how many sets of 'lucky' numbers they must have had, so I left and bought my tickets elsewhere..........!!!

 

[prairie_girl]

It wouldn't work that way. At least for US residents (citizens and permanent residents) the IRS shaves a mandatory 25% off and that probably wouldn't cover the entire tax liability. Especially not state taxes, which many states don't withhold from lottery winnings.

If a Canadian bought US lottery tickets and won, that would probably be subject to a 30% withholding. And theoretically more than 30% due as taxes.

As a California resident, any winnings from the California lottery wouldn't be subject to state income tax. I think only a few states do that. So if I bought a Powerball ticket in another state and won, I'd be taxed for it by my state.

Canadians can apply to have the taxes recovered.

Not sure why you’re talking about US residents and state to state winnings because they don’t apply at all.

 

[Mackenzie Click-Mickelson]

Alas no winning not even $2 to buy another one but I think we will still get one for Monday's drawing. We rarely play though.

And we would def. stay anonymous

 

[disneychrista]

And we would def. stay anonymous

Hope you are in one of the following states, Arizona, Delaware, Georgia, Kansas, Maryland, New Jersey, North Dakota, Ohio, South Carolina, Virginia, and Texas, as they are the only ones that allow winners to stay anonymous.

 

[Mackenzie Click-Mickelson]

Hope you are in one of the following states, Arizona, Delaware, Georgia, Kansas, Maryland, New Jersey, North Dakota, Ohio, South Carolina, Virginia, and Texas, as they are the only ones that allow winners to stay anonymous.

Yup I am. A few years back the powerball was talked about on the DIS so there was a huge conversation over requirements to give your identity vs allowing the choice was interesting the conversations going about that.

 

[Dan Murphy]

Hope you are in one of the following states, Arizona, Delaware, Georgia, Kansas, Maryland, New Jersey, North Dakota, Ohio, South Carolina, Virginia, and Texas, as they are the only ones that allow winners to stay anonymous.

Illinois lump sum choosers can remain anonymous. Not annuity choosers though.

 

[disneychrista]

Illinois lump sum choosers can remain anonymous. Not annuity choosers though.

That's interesting. That would make the decision to choose the lump sum a no brainer in my opinion.

 

[Dan Murphy]

That's interesting. That would make the decision to choose the lump sum a no brainer in my opinion.

The big Megaball that was won several months ago, $1.3 B I think, was an Illinois 2 person group. They took lump and nobody knows who they are, at least publicly. Just the gas station where it was purchased.

 

[bcla]

Canadians can apply to have the taxes recovered.

Not sure why you’re talking about US residents and state to state winnings because they don’t apply at all.

I’m saying that if a Canadian buys a US lottery ticket and then cashes it, the payout is subject to at least a 30% withholding that can’t be recovered. This article also mentions an Iraqi man who won a lottery jackpot through a stateside buying service. I’m pretty sure that he got that 30% shaved off, but also he was given an exemption to the public disclosure rules.

https://www.cbc.ca/news/canada/powerball-canada-5-things-1.3401641​

3. Canada won't tax your winnings​

Powerball winnings are subject to taxes in the U.S., but not in Canada. The IRS will take at least 30 per cent of your winnings — the standard for all "non-resident aliens" — while state taxes vary. But you're not obligated to report what remains of your winnings when you file your taxes back home.​

There are also some weird public disclosure rules (for a minimum prize amount) depending on the state where the ticket is purchased. A few allow anonymous winners, but most require the name to be public. My state requires the name and the retail location.

 

[prairie_girl]

I’m saying that if a Canadian buys a US lottery ticket and then cashes it, the payout is subject to at least a 30% withholding that can’t be recovered. This article also mentions an Iraqi man who won a lottery jackpot through a stateside buying service. I’m pretty sure that he got that 30% shaved off, but also he was given an exemption to the public disclosure rules.

https://www.cbc.ca/news/canada/powerball-canada-5-things-1.3401641​

3. Canada won't tax your winnings​

Powerball winnings are subject to taxes in the U.S., but not in Canada. The IRS will take at least 30 per cent of your winnings — the standard for all "non-resident aliens" — while state taxes vary. But you're not obligated to report what remains of your winnings when you file your taxes back home.​

There are also some weird public disclosure rules (for a minimum prize amount) depending on the state where the ticket is purchased. A few allow anonymous winners, but most require the name to be public. My state requires the name and the retail location.

I know how much you like to play the cut and paste game, but I suggest you do some further investigation. We do get taxes, but we can claim it back.

What is it with US posters thinking they know more about Canadian things than actual Canadians?

 

[Mackenzie Click-Mickelson]

I know how much you like to play the cut and paste game, but I suggest you do some further investigation. We do get taxes, but we can claim it back.

What is it with US posters thinking they know more about Canadian things than actual Canadians?

I think he's trying to convey what it would be if you bought here in the U.S.

You can't escape taxes here completely. You're going to owe the U.S. Federal government money even if Canada doesn't.

 

[Mackenzie Click-Mickelson]

Just the gas station where it was purchased.

That's what they do here too. Historically my direct area is not a good one for odds of winning unfortunately based on the releasing of that information but the other side of the state line is except that other side I can't stay anonymous unfortunately.

 

[bcla]

I know how much you like to play the cut and paste game, but I suggest you do some further investigation. We do get taxes, but we can claim it back.

What is it with US posters thinking they know more about Canadian things than actual Canadians?

This is an American thing, and many Canadians have come over to buy lottery tickets in the United States. It’s legal for Canadians to buy and cash tickets from American lotteries, but that would be subject to American rules on tax withholding.

I’m saying that nonresidents buying US lottery tickets will get 30% shaved off immediately off any win that has to be reported to the US Internal Revenue Service. That’s nonnegotiable with the IRS. It’s the same for almost any gambling winnings like a foreign visitor winning any kind of large slot machine jackpot in a US casino.

 

[bcla]

I think he's trying to convey what it would be if you bought here in the U.S.

You can't escape taxes here completely. You're going to owe the U.S. Federal government money even if Canada doesn't.

Well yeah. It kind of blew my mind when I visited Canada and was told that their gambling winnings aren’t taxable or even reported. But the Canadian government has no say over what American taxing authorities do if a Canadian wins a large lottery prize in the US. I’ve heard that it’s pretty popular in border areas.