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Monday, March 25, 2013

Tax Consequences of Winning the $338 Million Powerball Jackpot

PowerBallForbes:  How Much Tax Will You Owe on a [$338] Million Powerball Jackpot? A Lot More Than In 2012, by Janet Novack:

The good news: You are about to win a [$338] million Powerball Jackpot. The bad news: You’ll owe millions more in tax than you would have had you won the same pot in 2012. ... The top combined federal and state rate for a New Jersey resident on lottery winnings would be 46.2%, which translates into a tax bill topping $97 million–$11 million more than it would have been in 2012— if Saturday’s winner elects to take the $211 million lump [sum].

(Hat Tip: Greg McNeal.)

http://taxprof.typepad.com/taxprof_blog/2013/03/tax-consequences.html

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Comments

Wait, I'm confused. Does this mean the recent tax increases means you pay more taxes this year as compared to last year? Glad the article cleared that up.

Posted by: the real anon | Mar 26, 2013 6:17:28 AM