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  • If You Win The $600M Powerball, The Tax Man Will Come Knocking!

    Friday 17th of May 2013 12:39:40 PM

    If you haven’t already heard, the upcoming Powerball drawing is expected to be about $600 Million! Sounds great if you ask me! But let’s take a closer look at this….

    In the event you win this awesome prize expect the tax man to come knocking! The tax laws vary from state to state but do know that there is no avoiding this!

    Lucky for Florida residents, there is no tax for lottery winnings. On the other hand if you reside in New York City you can expect to pay around $197.1 Million (or more than half of the lump sum of $376.9 Million) in a total of federal, city and state taxes.

    From the very first day that you go to cash in your ticket, you will soon notice that you will be hit a withholding that is subtracted instantly. Coming next tax season you will be expected to pay out additional taxes depending on what tax bracket you fall in, not to mention state and city taxes!

    “These payouts are millions of dollars,” Scott Drenkard, an economist with the Tax Foundation. “So it’s not like taking the payout over a long amount of time would sneak you under a highest tax bracket.”

    Now thinking about it, it’s no wonder our state politicians love the lottery! It produces millions if not billions of dollars for the state yearly! Makes you wonder where an how the money is being spent!

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