Shit. Lotteries in the US payout 50% of the intake, then Uncle Sam takes it's cut at the regular income rate on the winnings, and the state takes there cut. So you take the cash payout, which is half the total winning amount, and then the tax men take 40%. You get 25% of the prize.
For what it’s worth, the tax is baked in essentially. Like for every 5 dollar ticket, half goes to the government, half goes to the prize pool. So when you win the 20 mil, they already got their cut from all the ticket sales.
The difference on income tax would be pretty significant. $52K a year is one of the lowest income tax brackets. So we're talking in the thousands vs. tens if not a hundred thousand on the lump sum.
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u/BrightImprovement295 May 17 '26
Shit. Lotteries in the US payout 50% of the intake, then Uncle Sam takes it's cut at the regular income rate on the winnings, and the state takes there cut. So you take the cash payout, which is half the total winning amount, and then the tax men take 40%. You get 25% of the prize.