When those lottery jackpots get into the hundreds of millions, the line at the lottery counter at your local Publix gets long. Dreams of life in a cushy South Tampa mansion next to Tom Brady and sailing along the beaches on a new yacht swim around in their mind as they wait their turn to purchase their ticket.
This week’s grand prize is over $600 million as of this morning. But a Fox TV station in Boston broke the numbers down to see how much of that money will disappear before it lands in your bank account. The good news as a Florida resident is that you’ll get to keep more than winners in most other states. But how much will you get to spend before Uncle Sam takes his cut?
If (or when) you win, you’ll have two choices. You can get your winner payments annually over 30 years. But for most lottery winners, that’s a gamble in itself. Will you still be around in 30 years? And do you really want to wait that long to get the full payout? Most don’t. They take the lump sum payout. And that takes a big chunk of your money. But it gets worse.
They say if you win that $640 million, it’s a tax difference of 24% and 37% because of your income you’ll need to report next year will be over a half billion. That means you’ll get about $207 million after taxes are taken out over the next couple years according to Fox’s numbers. And seriously, what can you buy these days with a mere $207 million?
There is SOME good news for you as a Floridian. Since you’re a Sunshine State resident, you’ll get to avoid paying a state income tax. [Source: Fox 25]