The Powerball has never been so high – so here is my obligatory blog post on what to do when you win the jackpot.
The most obvious answer is a pretty simple one – don’t worry about it. Everything will work out. You now have tons of money, and you can probably buy most of the things you want. But then the other questions arise – what do you do with the rest of the money once you have all of the things you wanted? Do you share? Do you spend? Do you invest, save, try to change the word?
Whatever you do with the money will have tax consequences. But there’s another thing to consider: if you know what you would do with the money if you happen to beat the odds – planning ahead can help minimize the tax impact.
What are the tax consequences of winning the Powerball? It depends.
The first thing to realize when dealing with the tax consequences of a transaction – especially one involving a windfall – is that it is much better to plan ahead than to react to the situation after the fact. Even once you’ve won the lotto, you should be making a plan for your money going forward.
If you plan to spend your winnings until the money is gone, this post probably isn’t for you. Have a good time and invite some friends along for the ride. Keep reading to see what you consider before and after you win that $1.5 Billion jackpot (or $4.3 Million if you share. Read more