Archive for Wednesday, October 4, 2006

Kansas winner claims $15M Powerball jackpot

October 4, 2006

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— A government worker and grandfather from the Topeka area stepped forward Monday to claim the $15 million Powerball jackpot from the Sept. 27 drawing.

The man, who under state law can remain anonymous, chose to take a cash lump-sum payment of $7.17 million instead of the entire amount over 29 years. After taxes, he took home a little more than $5 million.

"I'm now referring to my life as BP (Before Powerball) and AP (After Powerball)," he said. "Last Tuesday I was worried about how I was going to come up with the money to repair the leaky pipes in my old house and put new tires on my vehicle. That was BP. Now I have the AP attitude of, 'Who needs new tires? I can just buy a new vehicle.'"

The winner said he bought the Quick Pick ticket - with the winning combination 23-28-33-35-49-16 - at Dillons 64, a Topeka convenience store.

The man said he has grown children and grandchildren and said he plans to use the money to travel and help his kids and plan a family reunion at "some exotic place that we couldn't have afforded before."

He said he also plans to continue working, although he said he might retire earlier than he had planned.

Comments

roger_o_thornhill 8 years, 7 months ago

$$$$$$$$$$$allworship$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$almighty$$$$$$$$$$$$$$$$$$$$ $$$$$$$$$$$dollar$$$$$$$$$$$$$$$$$$$$$$

Wilbur_Nether 8 years, 7 months ago

The lump sum amount isn't due to taxation. The lump sum is taken in lieu of the amortization schedule which divides the payout over a series of years. So this winner was given a "Let's Make a Deal"-style choice: "You can have $15 million over the course of 29 years_OR_you can have $7.17 million today. Which do you want?" There are some benefits both ways.

The taxes came to a little more than $2M, according to the article, making the final lump sum take a little more than $5M. ($7+M less $2M = $5+M). Still millions less in taxes than had the winner taken the $15M amortization schedule. Same with the Iowa couple--the drop in their take from $200M to $67+M is due to their choosing a cash payout instead of the amortization schedule.

The taxes go to the usual places: Municipal, State, and Federal at the appropriate rates.

Linda Endicott 8 years, 7 months ago

I was seeing on TV about the Iowa couple that won the 200 million Powerball just the week before this man won. They chose the lump sum, too, and out of that 200 million, they will get 67.2 million.

Wow. Now that's some kind of tax rate. Percentage-wise, it seems the guy in Kansas got a better deal.

just_another_bozo_on_this_bus 8 years, 7 months ago

The way these usually go, if they take it as a lump sum, after taxes it'll probably be less than half that, but that's still a whole lot of money.

I've bought at least a half dozen tickets in my life, and didn't win anything. I think it must be rigged.

conservative 8 years, 7 months ago

Lump sum payments are usually about 50% of the advertised jackpot. The advertised jackpot is how much would be paid to the winner over a number of years if the money was invested in an annuity for them. If you take the annuity then you pay taxes on the yearly amount you get from the annuity.

If you take the lump sum (by most ways of figuring you're better off this way) then the amount is however much would have been invested in the annuity. From there expect to pay between 40 and 45 percent in state and federal taxes.

Christine Pennewell Davis 8 years, 7 months ago

well who cares about the tax table stil a butt load of money. I would gladly take it.

Wilbur_Nether 8 years, 7 months ago

One of the cottage industries that has cropped up around annuity-based payments purchases the right to future payments. Sadly, this makes it much easier for winners to blow it all in one place and still wind up in the poor house.

Todd 8 years, 7 months ago

The state teaches you math in school then taxes you when you don't learn it. (The lottery is a tax on people who can't do math)

Linda Endicott 8 years, 7 months ago

If you decide to be paid yearly, can your winnings be willed to your next-of-kin? Or is all that money just lost if something happens to you?

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