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Can someone explain how it works? I know it sounds stupid. But it seems like if our country is in a deficit shouldnt they stop paying out millions of dollars each week? 

or is that not how it works? 


im willing to admit i am ignorant. so no need to call me out on that lol. 

by on Jan. 9, 2013 at 11:50 AM
Replies (11-18):
Boomboompow12
by New Member on Jan. 9, 2013 at 3:38 PM


Quoting Ms.KitKat:

 and at pay-out time, the government comes knocking on your door for the taxes.

Well they don't exactly come knocking at your door...lol.   But they do give you the courtesy of not actually seeing the money, so you won't miss it!

Ms.KitKat
by Platinum Member on Jan. 9, 2013 at 3:39 PM

 If you put $52 dollars away each year into your 401K which then collects interest over say 25+ years, you have better odds of "winning" than you would ever in the lottery. Far be it from me to tell you what to do with your hard-earned money. JMHO: lotteries are the poor-man's dream of streets paved with gold and you might as well kiss that money good-bye!

Quoting JP-StrongForTwo:

We dont have an accountant. and we dont really have enough money to do stocks or bonds lol. DH has a retirement 401k and thats it. 

i figure a dollar a payday to play the odds isnt that big of a financial burden lol 

Quoting Ms.KitKat:

 You would be much better off investing in a good solid stock or bond. Consult with your accountant before you spend your retirement funds on lotto tix.

Quoting JP-StrongForTwo:

OH i see thank you guys. it makes much more sense to think of it kind of like a raffle. 

and i didnt know the government tax it. thats a good thing. maybe i should start playing LOL> 


 


 

DivingDiva
by Gold Member on Jan. 9, 2013 at 3:39 PM

I have a friend who refers to the lottery as "the idiot tax".  When you look at the odds of a big payout, it seems he may have a point.  I would suggest sticking with the 401k.  

Ms.KitKat
by Platinum Member on Jan. 9, 2013 at 3:41 PM

 yeah- imagine what they would charge if they made a house call? LOL

Quoting Boomboompow12:

 

Quoting Ms.KitKat:

 and at pay-out time, the government comes knocking on your door for the taxes.

Well they don't exactly come knocking at your door...lol.   But they do give you the courtesy of not actually seeing the money, so you won't miss it!

 

canadianmom1974
by Gold Member on Jan. 9, 2013 at 3:42 PM
Just to mix you up a little, in Canada, lottery winnings are not taxed. So if I win a million dollars, I don't pay income tax on that money. Now, if I invest it, I'll pay income tax on the earnings, but nothing on the original win.
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Boomboompow12
by New Member on Jan. 9, 2013 at 3:45 PM


Quoting JP-StrongForTwo:

hey they can have their taxes. if you win 80 mil, and the gov comes and wants their 25% that still leave you with 20mil. 

its not as much as 80mil but its nothing to scoff at lol and well worth the dollar spent on the ticket! 

Quoting Ms.KitKat:

 and at pay-out time, the government comes knocking on your door for the taxes.


Federal withholding is 25%, but then you still have to figure state.  My state is 4%.

When its tax filing time, its possible to get some of it back. Depends on if you paid too much in for that year,

Boomboompow12
by New Member on Jan. 9, 2013 at 3:48 PM


Quoting canadianmom1974:

Just to mix you up a little, in Canada, lottery winnings are not taxed. So if I win a million dollars, I don't pay income tax on that money. Now, if I invest it, I'll pay income tax on the earnings, but nothing on the original win.

There are some US states where the state doesn't tax your winnings.

canadianmom1974
by Gold Member on Jan. 9, 2013 at 3:52 PM
But there's still federal tax, right? Lotto winnings are not taxes at all in Canada.

Quoting Boomboompow12:



Quoting canadianmom1974:

Just to mix you up a little, in Canada, lottery winnings are not taxed. So if I win a million dollars, I don't pay income tax on that money. Now, if I invest it, I'll pay income tax on the earnings, but nothing on the original win.

There are some US states where the state doesn't tax your winnings.

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