Both jackpot lottery winners and people who don’t succeed with the lottery often dream about what they could do with the money. A lot of inspiration and ideas can come from the real lottery winning stories. Even those who don’t win the lottery are entertained about what they could do if they get really lucky and win the big jackpot. One thing that can be entertaining for millions of lottery losers and the few lottery jackpot winners is to look at the ten things you could do if you won the lottery.
1. The first thing that can be done is to pay off every debt. Everything from credit cards to mortgages with 29 years left can be paid down completely with the proceeds from the lottery, especially if it is in the form of a lump sum payment. In many cases, the debt of family members can be paid off as well. The lottery ticket is an instant ticket to becoming debt free…Continue Reading
A lot of people think that jackpot winners of the lottery are exempt from taxes since a government entity is running the lottery. For the most part, that is not true. Those who win a big jackpot from the lottery are going to have to give some of the winnings back to the government in the form of taxes. Depending on the state of residence for the winner, he or she may be liable for tax liability that reaches 50%. All lottery jackpot winners should expect that a significant part of their winnings will disappear due to taxes. It is important to understand the tax ramifications so that the lottery winner doesn’t get into trouble with the governmental taxing authorities.
A big chunk of the jackpot will be going to the federal government. By law, the lottery will need to withhold 28% of the winnings in order to make sure that the taxes are paid. However, the withholding is often not high enough to meet the total federal tax liability. That is why it is ey important ito make sure that the withholding is sufficient to cover all tax liability. If necessary, the tax liability for the lottery jackpot winnings should be made via estimated tax payments in order to ensure that the lottery winner does not incur any penalties for underpayment of estimated taxes. It is also important to do the same thing for state and local taxes as well. However, those who win the lottery should check to see if lottery winnings are exempt from state taxes. There are some cases it is exempt such as inContinue Reading