Lottery questions ?
Why dont the state already tax the lottery ammount and then place the real ammount you'll win. Like if you win 20million they take half like what like they couldn't just have pre tax it.
- kswck2Lv 71 month ago
Most of the bigger lotteries, even after taxes, are for more money than most people should have anyway.
- SlickterpLv 71 month ago
Because everyone's tax situation is different and the tax amount wouldn't be the same for everyone.
- Jay PLv 71 month ago
Not an issue where I live as lottery/gambling winnings are tax free. If they say the jackpot is $1 million, you receive that full amount. No taxes, no annuities.
- Anonymous1 month ago
The bigger number looks better in ads. Let's say taxes on a big prize is 33%. What looks better?
"The big price is $400 million dollars"
"The big price is $300 million dollars".
I realize at that point, it's more money than anyone can really imagine.
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- zman492Lv 71 month ago
There are two major reasons.
First, they want to advertise as high a figure as they can in order to increase sales. That is why they advertise the amount amount if you take the annuity instead of the lump sum.
Second, they do not know how much tax you will pay. A winner might chose to donate half of what is received to a charity, decreasing the amount of tax.