Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [lottery]

43 questions
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Are lottery tickets ever a wise investment provided the jackpot is large enough?

If the odds of winning a lottery jackpot are one in 292 million, and the jackpot prize is expected to be greater than than $1 billion, does this make a lottery ticket a wise investment? I know there is a risk that I'll lose my investment, and also a…
Chris Payne
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Won the lottery - how do I keep the money?

Sadly only a hypothetical question, but here it goes: If you suddenly gained a large sum of money (several million $/€/whatever) by winning the lottery, some inheritance or anything else, how could one preserve the money so you would stay rich as…
And
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How does gambling (like buying a lottery ticket) differ from investing?

Investors seeking a higher return on their investments may invest in things that they know have a higher risks associated with them. Greek bonds have higher interest rates, and banks charge more interest for credit card users with lower credit…
ACV
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Is taking a lump sum from a lottery or other prize always preferable to taking the payment plan?

Every time a big money contest or lottery is advertised, their big "jackpot" prize is always really a payment plan - something like $50,000 a year for the next twenty years. Is it ever preferable to wait the full twenty years for the full prize, or…
Jeffrey
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If I won the lottery but gave it all away, would I still have to pay taxes?

Suppose a hypothetical somebody won the lottery, but being such a magnanimous fellow, they decided to give away every penny. Would my hypothetical do-gooder still have to distribute money from post-tax funds, or is it possible to just tax each…
user78214
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Can pretax lottery winnings be donated to charity?

Can pretax lottery winnings be donated to charity in the US simultaneously creating a deduction of the taxable lottery winnings and putting pretax proceeds to a productive cause?
CQM
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Why does lottery write "in trust" on winner's cheque?

I never saw a lottery pay cheque to the order of winner "in trust", before this news on Aug. 21 2024. Why not just pay to the order of "JAMES B."? Why add "in trust"? I tried to do research. Page 145 defines trust When a person has rights which…
user16249
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How does a big lottery winner cash his huge check risk-free?

You've just won $20 million in the lottery. Until you figure out what do do with the cash, you want to move it to the safest place you know: US Treasury account(s). But the lottery (per the California winners' handbook) won't do anything more…
Witness Protection ID 44583292
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Are lottery winnings taxed based on the ticket date or the redemption date?

Suppose I purchase a lottery ticket today (Dec 14, 2015) and win $25K. If I wait a few weeks and redeem the ticket after Jan 1, are the taxes due based on income in this year (2015) or next year (2016)? Perhaps the answer is simply when the money is…
TTT
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How can I gamble in a "lottery" by using financial instruments?

I noticed that some financial instruments have lottery-like payoffs. If that is really the case, I am planning to play the "lottery" using financial instruments instead of the lotteries organized by the gambling industry. Reasons for doing…
user102086
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How long to save losing lottery tickets?

I know I can write off losing lottery tickets (a) up to the amount of any winnings, and (b) provided I itemize my federal taxes. But does that apply only to losses in the same year as winnings, or can the losing tickets be carried forward so that…
RJo
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How are lottery winnings taxed when you move to a new state?

If you win Mega Millions in a taxing state and choose the annuity option and later move to a non-tax state, will you still have to pay taxes to the state you won in?
DeeDee
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Taxation on split lottery winnings?

If you and another person (or group of people) went in a pool to buy a bunch of lottery tickets, and win, how does taxation work for people who split lottery winnings? Does one person claim the winnings and then "gift" the amounts to the others, or…
Michael
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Can someone explain in simple and direct ways how the gift / donation tax works for a lottery winner?

My jackpot money is cleared in the bank with all its federal/state/city/village/building taxes paid in full. Now I want to start giving money away. What will be the tax implications if I give or donate more than X per year? I heard something about…
chrisapotek
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Is playing the lottery worth it in the same way that insurance is?

I was reading this question, and it made me wonder - If insurance is worth the expected loss because of the catastrophe that it could prevent, can playing the lottery be worth the expected loss because of the huge possible winnings? I understand…
Andrew
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