• runner_g@lemmy.blahaj.zone
      link
      fedilink
      arrow-up
      9
      arrow-down
      1
      ·
      1 year ago

      This is what happens if you take it out as a lump sum. If you choose to take your winnings over an extended period of time (20 years or something), it is taxes more like income.

      That said, I totally agree with you!

      • wolfpack86@lemmy.world
        link
        fedilink
        arrow-up
        3
        ·
        1 year ago

        A significant amount is “lost” when you get immediate payout versus the annuity. The lottery will invest and be able to pay out more over the thirty years, thus they offer less the the lump sum

        On 1.2 billion over 30 years, the average tax rate will not be significantly different year to year vs the avg tax rate on a lump sum.

    • scifu@lemm.ee
      link
      fedilink
      arrow-up
      7
      ·
      1 year ago

      The poor smuck probably claimed the lottery as an individual. He should have opened a company and claimed the ticket so that he can expense out a lot of his taxable income

      /s

      I am 99% sure this is not how it will work in this specific scenario but does otherwise when it’s business as usual.