Relax!
It’s only $87.75M after taxes......
And how do they expect the winner to live on only 87.75M?
In Texas, you’d only pay 25 percent of the cash option in taxes. Should I win, I couldn’t make the world a better place, just my little corner of it. (sigh) Dream on, I suppose.
Maybe I REALLY AM bad at math. I thought the top tax rate was 35% plus my state tax 7% which makes it 42%....So the after taxes is $117Million Yeah I can live with that! LOL
I bet the taxes will be 102% with that kind of income like this guy!
http://www.forbes.com/sites/beltway/2012/02/08/a-102-tax-rate-really/
By my calculations, which has been borne out by previous stories about winners, the post-tax cash taking is about 34% of the annuity jackpot amount -- or roughly $136 million in this case.
In most, if not all, states, these lottery prizes are exempt from state taxes.
Note that different lotteries have different math behind them, based on how the annuity pays out. Mega Millions, for example, has a higher cash option due to being based on a 20-year annuity (as opposed to Powerball's 26 year), so your after-tax take is about 40% of annuity value.