In Virginia, with our state tax and federal tax taken out, and the cash option, you get $355,000 for each million in the jackpot. (%50 for cash out, %71 for post tax total)
Tris
What an interesting thread. Here you don’t get a choice between a lump sum or an income benefit. The $x million prize means exactly that: $x million paid into your bank account, free of tax.
in canada, lottery winnings are tax free. so for example, last week’s super 7 estimated jackpot of $18, 000, 000.00 actually paid out $18,292,405.00 to one winner.
now, if the winner of that jackpot were to just plunk that cheque into a savings account, future interest earnings would be considered taxable income.
of course, one hopes that $18 million could, in part, buy some better financial advice than “plunk it into a savings account.”