After winning the lottery, you are entitled to the payment of the amount you have won. It is however important to note that taxes and other charges levied by the state and federal government may significantly reduce the amount won in the lottery by more than 50% in some cases. 25 per cent of the money won in a lottery is deducted as taxes to the Federal government, taxes and lottery some states levy between six per cent and seven per cent of the money won in addition to the federal tax. Others states do not levy additional tax on money won in lottery games. Some Americans who have previously won $ 5 million in lottery have reportedly received around $ 2.8 million after taxes and other deductions
After winning the jack pot, you are vested with two options of payment. There is the cash option whereby you will be paid once and in full the amount you have won. Under the annuity option, you will receive annual payments for a period of 26 years. An American who wins $ 355 million jack pot is likely to receive $ 13. 6 million payments annually for 26 years. The second option (of receiving payments in 26 annuities) is preferred by many Americans because there is the danger of spending a one time cash payment unwisely.
Different winners of lottery spend their cash differently. Some lottery winners may donate some of their cash to a charity and put the rest of the cash to personal use. There is a myth that doing so may increase the chances of winning more cash in the future. Some donate their cash to a charity in this believe while others do so for personal reasons. Others spend all their cash on personal matters.
If you win a lottery and receive a huge amount of cash, it is preferable to consult your financial or legal adviser. Some financial institutions can grant you a loan or mortgage towards buying or building a home especially if you choose to receive your money in annuities for 26 years.
After winning the jack pot, you are vested with two options of payment. There is the cash option whereby you will be paid once and in full the amount you have won. Under the annuity option, you will receive annual payments for a period of 26 years. An American who wins $ 355 million jack pot is likely to receive $ 13. 6 million payments annually for 26 years. The second option (of receiving payments in 26 annuities) is preferred by many Americans because there is the danger of spending a one time cash payment unwisely.
Different winners of lottery spend their cash differently. Some lottery winners may donate some of their cash to a charity and put the rest of the cash to personal use. There is a myth that doing so may increase the chances of winning more cash in the future. Some donate their cash to a charity in this believe while others do so for personal reasons. Others spend all their cash on personal matters.
If you win a lottery and receive a huge amount of cash, it is preferable to consult your financial or legal adviser. Some financial institutions can grant you a loan or mortgage towards buying or building a home especially if you choose to receive your money in annuities for 26 years.
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