![]() ![]() If you’re concerned that you may not live another 30 years, that’s not necessarily a reason to choose the cash option. At the end of 30 years, the amount will equal the announced jackpot. That’s because the jackpot amount is based on the state government investing the money and the winner receiving the annual annuity. They can decide to take the cash option, which is less than the jackpot amount. Lottery winners don’t have to settle for the annual payment. The winnings will change your life irrevocably, so make sure you seek out sound financial management. By law, the name of Cali Lottery winners is public information, so you may find yourself with a lot of new best friends. ![]() Lottery officials urge winners to obtain legal advice and consult a tax professional after claiming their prize. If you purchased your winning ticket out of state, you will have to pay California state taxes on the amount. There is an exception to the general rule that lottery winnings are not subject to California taxes. Keep in mind that although the lottery winnings are not subject to California state tax per se, winners may find themselves liable for local and state taxes based on their overall annual income. California does not charge state tax on these winnings, and there are no local taxes, but federal taxes are withheld from the annuity checks. Each major prize is paid in 30 graduated annual installments by default. Whether you’ve won the Super Lotto, Mega Millions or Powerball lotteries, the way the jackpots are paid are the same. You can typically expect to pay the highest federal tax rate of 37 percent on your lottery jackpot winnings. ![]()
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