5 ms·

Those Billion-Dollar Lottery 'Jackpots' Aren't Even Half That Big

12 points by gnicholas 3y ago

bdangubic 3y ago
Just terrible, I hope I am never in a situation where I win a billion dollars only to realize I am not getting even half of it... can't think of anything worse happening to me
aurizon 3y ago
Here in Canada, the lottery is tax free, because if it was taxable the cost would be a deduction - small if you won a $billion, but the aggregated deductions when take from taxable income would exceed the tax collected. In the USA they chose to cheat the tax payer = pay taxes, yet zero deduction. Are declared professional gamblers treated this way?? What if we all declare as pro gamblers = get the deduction of the $1-20/week of the typical gambler?? How does Las Vegas win/loss play out?
- gnicholas 3y ago
  Interesting angle. Of course, most people would not remember to take the deduction for the cost of tickets purchased. I think you can deduct gambling losses, but they can only be used to offset gambling gains. So if you're a net loser (and on average, lottery players are), then they wouldn't be able to deduct the full amount: https://www.irs.gov/taxtopics/tc419 https://www.irs.gov/taxtopics/tc419
  - aurizon 3y ago
    Yes, here they ignore gambling wins/losses = no tax or writeoff aspects. They do treat foreign sports books etc differently, US/Canada has a tax treaty where sports wins are share-taxed = Canada gets part and US a part, not sure of how it ramifies = never won any of them. They might also share these big US ones?
- addicted 3y ago
  Lottery winnings and costs in the U.S. are treated exactly the same as any other gambling winnings and costs. You can deduct the costs of a lottery ticket but only against any winnings. You cannot deduct it against other income. https://turbotax.intuit.com/tax-tips/general/everything-you-need-to-know-about-filing-taxes-on-winnings/L7ifGWjkX https://turbotax.intuit.com/tax-tips/general/everything-you-...
  - aurizon 3y ago
    I see, a true bias against the gambler, along with the odds.
goles 3y ago
https://archive.is/cq3EW https://archive.is/cq3EW
labrador 3y ago
This is a great example of how the internet wastes my time. I'm unlikely to ever need to worry about my billion dollar jackpot.
- taskforcegemini 3y ago
  but we can have an opinion on principles
hyperhello 3y ago
Assuming the money is from the pool of lottery ticket purchases, what is the percentage paid out versus what is kept for marketing, schools, etc?

12 points by gnicholas 3y ago

Just terrible, I hope I am never in a situation where I win a billion dollars only to realize I am not getting even half of it... can't think of anything worse happening to me

aurizon 3y ago

Here in Canada, the lottery is tax free, because if it was taxable the cost would be a deduction - small if you won a $billion, but the aggregated deductions when take from taxable income would exceed the tax collected. In the USA they chose to cheat the tax payer = pay taxes, yet zero deduction. Are declared professional gamblers treated this way?? What if we all declare as pro gamblers = get the deduction of the $1-20/week of the typical gambler?? How does Las Vegas win/loss play out?

gnicholas 3y ago
Interesting angle. Of course, most people would not remember to take the deduction for the cost of tickets purchased. I think you can deduct gambling losses, but they can only be used to offset gambling gains. So if you're a net loser (and on average, lottery players are), then they wouldn't be able to deduct the full amount: https://www.irs.gov/taxtopics/tc419 https://www.irs.gov/taxtopics/tc419
- aurizon 3y ago
  Yes, here they ignore gambling wins/losses = no tax or writeoff aspects. They do treat foreign sports books etc differently, US/Canada has a tax treaty where sports wins are share-taxed = Canada gets part and US a part, not sure of how it ramifies = never won any of them. They might also share these big US ones?
addicted 3y ago
Lottery winnings and costs in the U.S. are treated exactly the same as any other gambling winnings and costs. You can deduct the costs of a lottery ticket but only against any winnings. You cannot deduct it against other income. https://turbotax.intuit.com/tax-tips/general/everything-you-need-to-know-about-filing-taxes-on-winnings/L7ifGWjkX https://turbotax.intuit.com/tax-tips/general/everything-you-...
- aurizon 3y ago
  I see, a true bias against the gambler, along with the odds.

goles 3y ago

https://archive.is/cq3EW https://archive.is/cq3EW

labrador 3y ago

This is a great example of how the internet wastes my time. I'm unlikely to ever need to worry about my billion dollar jackpot.

taskforcegemini 3y ago
but we can have an opinion on principles

hyperhello 3y ago

Assuming the money is from the pool of lottery ticket purchases, what is the percentage paid out versus what is kept for marketing, schools, etc?