So you think winning a lottery is so great?

[imanaknut]

If you are careful, you can take some of your winnings and enjoy life, but according to this article, the government makes out better than you if you are not careful!

http://finance.yahoo.com/news/mega-millionaires--big-tax-bills.html

[Warthogg]

One of the big reasons why some lotto winners wind up bankrupt is failure to recognize the federal and state income tax hits before it's too late.


I believe federal and state taxes are deducted before the winnings, net winnings, are transferred to the winner/s.

So far as gift taxes, I read lotto winners are getting smarter. I know the woman from Rhode Island, who was the single winner of the biggie just before the last, already had her trust in place and her winnings actually went into that trust. A 'Living Trust' one would presume.

All that to say give ME all those problems...please !!


Wart

[Dr. Gonzo GED]

If you are careful, you can take some of your winnings and enjoy life, but according to this article, the government makes out better than you if you are not careful!

http://finance.yahoo.com/news/mega-millionaires--big-tax-bills.html
I could live with just taking home 35-40% of the jackpot. It's a found money really. Just got to lowball what your taking home, pay the piper his baksheesh, and be smart enough to live off of interest instead of capital.

[Cypher]

I think the problem is a lot of people that win the lottery don't have a clue how to manage money. I thought I read somewhere that the lottery officials give them recommendations on people to contact to get help dealing with the finances.

[old Grump]

The smart ones see a lawyer and financial adviser first then claim the ticket. The idiots just collect the check, give away a lot and spend a lot and then find they owe more than they have because they wasted it. Seems inconceivable to me but some people just never learn until they have been hit between the eyes with a hammer.