If I won a million dollars off a scratch off ticket, is it a lump some? Or Annuity in the state of PA?

****ALSO**** HOW MUCH MONEY WOULD YOU GET AFTER TAXES IF IT WAS A LUMP SOME?!?!?!

2 Answers

Relevance
  • pdq
    Lv 7
    8 years ago
    Favorite Answer

    RK - the taxes are besides the point.

    A one-million dollar prize would be worth about $600,000 right now. THEN you have to pay income tax on that money. The lottery company doesn't "take" taxes. The government does. How much? Well they take the same amount out as if you earned $600,000 at a high-paying job. It's the same as income. It would likely be over 30%. That would leave about $420,000 left over.

    If you choose the annuity, (and all big prizes like that are always annuity or lump sum choices), then you'd get the WHOLE million dollars, but you'd get it over 20 years. That's $50,000 per year. How much taxes would there be? Again - it would be the same as if you had a job that paid $50,000 per year.

    By the way - All of this is a colossal waste of time. The truth is, you could buy 50 of these tickets each week for the next 70 years, and you would STILL have, for all practical purposes, ZERO chance of ever hitting the million. It's not a "fun" truth, but I promise you it's the truth nonetheless.

  • ?
    Lv 7
    8 years ago

    you have a choice of getting a lump sum,or you can get it monthly. they will probably take 20% for taxes. if you take a lump sum it will be for less than the million. don't know what the taxes would be

    as the lump sum amount isn't known.

Still have questions? Get your answers by asking now.