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2 Answers

Mega Millions total taxes?

Asked by: epondel 674 views YA Discussion

Okay it’s time to dream. The jackpot is now half $ 1 billion. I live in new York. I know the lump sum is less and then 33% is taken out for federal and state taxes off the top. Will I owe any more tax after that? Of course this is all only if I win but a guy can dream right? Not that I’m complaining but I’m curious how to reduce the tax liability after withholding

2 Answers

  1. SumDude on Mar 29, 2012 Reply

    The only tax after the original 33% federal tax [idk about state tax for you] would be the tax on the interest or other earnings that your winnings produce each year.

    You could reduce that by putting all of your left over winnings in a ZERO interest rate account. {but it is better to make some money, pay a bit of tax, and have most of the interest money left over.}

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  2. Rob Peters on Mar 29, 2012 Reply

    It’s a wonderful dream to have as long as the lure to win doesn’t cause you ypto overspend and not be able to buy food.

    The Federal tax rate is 25%. If you’re lucky, and winning $ 500,000,000.00 you must be you live in Texas, Fkorida,oralaskaandtge25% Fed tax is all you’ll loose. I think there’s one more state without a state or local income taxes vpbut I’m not sure and I cannot guarantee ther is one.

    $ 500millionx75% leaves you with lots of money single pay or over twenty years. I ypto ink I’d take it all a once in pennys and sit in a room and look at it.

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