Plus $1 billion...

[Gawdzilla Sama]

I wouldn't trust the tax rates to stay the same over thirty years.

If I win I'm going to hire a guy to do my taxes with one caveat, "keep me out of tax trouble!" Then I'm going to hire a company to keep an eye on him. And one more to keep an eye on everybody.

[Seraphina]

A group of us at work went in on tickets for last Friday's drawing, before the jackpot reached the crazy-high number it is now. Someone asked if I wanted to play and I said yes but then they said everyone's putting in $20 each. Because they think the odds of winning are a lot higher with 200 tickets instead of 1 ticket (um, no it's not but I didn't want to argue math with these people).
I almost decided not to join but then realized if they DID win and I didn't play, I'd have to jump off a building or something, so I played. I guess we'll be playing again for the next drawing too.

-Teresa

---

I would step over $2 if I walked by it. Seriously, folks, if that much money makes an impact on you, DON'T SPEND IT ON THE LOTTERY.

Jesus Christ on a bike, I'll pick up pennies from the sidewalk. $2 will buy you like two candy bars, for gods sake.

-Teresa

---

When I win my 1.6 billion, only people who have repped me get to come party on my private island full of sexy ladies.

Oh gee, I can't wait lol.

-Teresa

[Gawdzilla Sama]

If I bend over to pick up money it had better be worth it, I might just do a face-plant on the asphalt.

[popeyespappy]

Have I got this right? If you win the jackpot and want what you have won, you have to be paid in instalments, or they rip you off and give you 900,000,000. How rude.

The taxes are taken out right then instead of over thirty years. End result is the same unless tax rates change over the three decades.

That's not right. If you take the cash option the payout is only about 60% of the jackpot amount. The only way to collect the entire amount is select the annuity.

[Gawdzilla Sama]

http://www.megamillions.com/difference-b...nd-annuity

[popeyespappy]

http://www.megamillions.com/difference-b...nd-annuity

Yep. Assuming the current estimate is correct the payout for a single winning ticket would look about like this:

Year 1 : $24,082,296.13
Year 2 : $25,286,410.94
Year 3 : $26,550,731.48
Year 4 : $27,878,268.06
Year 5 : $29,272,181.46
Year 6 : $30,735,790.53
Year 7 : $32,272,580.06
Year 8 : $33,886,209.06
Year 9 : $35,580,519.52
Year 10 : $37,359,545.49
Year 11 : $39,227,522.77
Year 12 : $41,188,898.90
Year 13 : $43,248,343.85
Year 14 : $45,410,761.04
Year 15 : $47,681,299.09
Year 16 : $50,065,364.05
Year 17 : $52,568,632.25
Year 18 : $55,197,063.86
Year 19 : $57,956,917.06
Year 20 : $60,854,762.91
Year 21 : $63,897,501.06
Year 22 : $67,092,376.11
Year 23 : $70,446,994.91
Year 24 : $73,969,344.66
Year 25 : $77,667,811.89
Year 26 : $81,551,202.49
Year 27 : $85,628,762.61
Year 28 : $89,910,200.74
Year 29 : $94,405,710.78
Year 30 : $99,125,996.32
Total Payout: $1,600,000,000.10

They would withhold taxes each year based on the amount of the annual payout.

If you take the cash option the payout would look like this:

Year 1 : $904,000,000.00
Total Payout : $904,000,000.00


In this case they would withhold taxes on the $904 million.

[Gawdzilla Sama]

If you read the link I posted you'd see there is no caveat about the amount paid out, just how it is paid.

[Fireball]

The full amount is paid out, but Uncle Sam is going to get his cut...and you're not even going to get a kiss. I would take the one-time payment, personally. I've said that I would then hire someone full-time to answer the phone and say "no" to 99.999% of the calls we'll field after a win. My wife said she'd be happy to do that.

$904M. You can buy cities for that kind of scratch.

[Gawdzilla Sama]

The other reason for a full payout at once is that the government might become confiscatory at some time in the next thirty years. Maybe not overtly but you might find yourself in a "special tax bracket".