We have ourselves a winner that's right They're not at this desk though one Lucky person over in New Jersey has won The eighth largest jackpot in US Lotto History the MegaMillions was worth $1.3 Billion do that's a cash payout of more Than 537 million ah but don't be too sad If you didn't win you'll have another Chance to cash in tonight the Power Ball Drawing is an estimated $865 Million jackpot all right let's Bring in uh Dan gud now to break this All down is the founder of the Accounting firm G trude and Company Dan Both you and the Mega Millions winner in New Jersey are you the Mega Millions Winner right are you right first of all Did you win the money while you working Today if so I I did not so here I am and So then what will the winner have to Consider when it comes to state tax and Other um bites at the Cookie so let's start with this you have Two options to get a uh an annuity over 29 years or get a cash payout so if you Opt for the cash payout and you get 537 Million you have Uncle Sam the federal Government they're going to take a cool 200 million out of that in tax and then The state of New Jersey is going to jump In with about 8% and they're going to Take 43 million out of that so when all Is said and done you're going to net About
294 million that's what you're going to Get so is it even worth it you Decide the answer is yes I will take $294 Million um you know what I even take Less than that and I want to ask you About that right 1 million because there Were actually a lot of lottery winners Who didn't take home the jackpot but Actually got these smaller winnings but Smaller winnings in this case were up to A million dollar so uh what are the Implications for folks with this Slightly smaller uh payout Well you're going to pay slightly less In tax of course but lottery winnings Are considered ordinary income so it it Would be similar to getting a million Dooll paycheck which is not too shabby But of course when you get that paycheck It's not going to be for a million Dollars you're going to have all those Taxes taken out so you're going to get a Net check of whatever that may be it's Still free net money and then you need To decide what is it that you want to do From there uh another quick question you Know I like to advise people you have More of a chance of being hit by Lightning than winning the lottery so Invest in you know stocks and things That grow or high not investment straty This is this is not Financial advice However um can you perhaps purchase the
Tickets as a corporation as a company And Dodge some of those taxes and is There any difference between taking it As a big payout or Annually well let's start with whether You whether you formed a corporation for The ticket or W it individually those Taxes are going to hit just the same so There's not a work around uh related to That so sorry about that but uh the big Question becomes hey do you take the Lump sum which in this case was the 537 Million or do you take it over time now When you take it over time you actually Will get the full 1.1 billion in this Case but subject to tax the reason that People would take the annuity or choose That option is because it's basically a Guard rail look if you're going to get a Check for approximately 300 million There's a lot to decide on what to do With that money and there's 70% or more Go bankrupt when they win the lottery so The the way to be able to preserve that For almost 30 years is to get a check Every year huh all good problem I like How creative though you were you were Thinking you know good way to think all Right and G thank You thank you thanks Dan
