Massachusetts Hospital Worker Claims Record $758.7M Lottery Jackpot

[TomSea]

Massachusetts Hospital Worker Claims Record $758.7M Lottery Jackpot

Mavis Wanczyk, of Chicopee, Mass., smiles during a news conference where she claimed the $758.7 million Powerball prize at Massachusetts State Lottery headquarters, Aug. 24, 2017, in Braintree, Mass. Officials said it was the largest single-ticket Powerball prize in U.S. history.

BRAINTREE, MASS. —

A 53-year-old Massachusetts hospital worker stepped forward Thursday to claim the biggest undivided lottery jackpot in U.S. history — $758.7 million — after breaking the news to her employer the way the rest of us only dream of: "I called and told them I will not be coming back."

"The first thing I want to do is just sit back and relax," Mavis L. Wanczyk told reporters at a news conference.

Wanczyk chose to take a lump-sum payment of $480 million, or $336 million after taxes, lottery officials said. Winners who take a gradual payout stand to get more money spread out over several decades.

Continued: https://www.voanews.com/a/massachusetts-hospital-worker-claims-record-lottery-jackpot/3999364.html

[dfwgator]

I don't know if it's so wise to make it public so soon before consulting with an attorney and getting things in order.

[Restored]

Once that ball starts rolling, it can't be stopped.

But my momma didn't raise me to trust lawyers.

Hire a good security firm for your house. Then move away or travel. Cancel the phone. Basically, you become dead to everyone. Then you don't do a thing with the money for 3 months. It sits in a savings account making the bank rich until you find sound advice.
I'd fly to Wilmington NC, rent a car and go to Ocracoke for a week. Then I would go to the US Virgin Islands.  Then Key West. I'd be hard to find.

[InHeavenThereIsNoBeer]

Once that ball starts rolling, it can't be stopped.

But my momma didn't raise me to trust lawyers.

Hire a good security firm for your house. Then move away or travel. Cancel the phone. Basically, you become dead to everyone. Then you don't do a thing with the money for 3 months. It sits in a savings account making the bank rich until you find sound advice.
I'd fly to Wilmington NC, rent a car and go to Ocracoke for a week. Then I would go to the US Virgin Islands.  Then Key West. I'd be hard to find.

You'll be easy to find, you just told us where you're going.

[240B]

I don't know if it's so wise to make it public so soon before consulting with an attorney and getting things in order.

According to what I saw on news, she has all that stuff lined up. There was a woman by her side who seemed to be a financial advisor. She said something like, I'm going to help her through this. I don't know.


But yeah, I would definitely get out of town. I would fly to the smallest pacific island I could find. And then buy it.

[Restored]

Yeah but I'm not going to win because I don't play.

For about a year, everyone is going to be jumping in front of your car or falling down on your property. That's why you have to go somewhere. Within a few days, no one will know who you are except the people in your hometown. No one in Ocracoke or Key West will know you are rich. I would also open accounts in several banks. You'll need to start transferring funds to limit risk. 

And buy tires for the Cavalier, not recaps.

[Restored]

But yeah, I would definitely get out of town. I would fly to the smallest pacific island I could find. And then buy it.

I would not go outside the US or Canada. You are prime kidnap material, especially for a government. The nice thing about islands is that people generally don't pay attention to the news. They are there to vacation. One of my friends is a CPA and he would make a good wing man.

[Applewood]

Waiting for someone to cry "WHITE PRIVILEGE!" 

The lottery is racist.

Seriously -- congratulations to her.  Just so she doesn't become one of those winners who ends up ruined...like the idiot who carried large sums of money on him and was robbed. This lady does look like she has her head on straight, though.

[mountaineer]

I certainly wouldn't claim the prize the next day, while everyone's thinking about it. I'd get my financial, legal and home security ducks in a row and then wait a few months before notifying the state lottery commission. And I'd tell them no press conference, no big fake check (if one can do that and still get the money).

[Smokin Joe]

I certainly wouldn't claim the prize the next day, while everyone's thinking about it. I'd get my financial, legal and home security ducks in a row and then wait a few months before notifying the state lottery commission. And I'd tell them no press conference, no big fake check (if one can do that and still get the money).

The big fake check is a fake anyway. Her actual cash in hand will be less than half that.

[Wingnut]

I don't know if it's so wise to make it public so soon before consulting with an attorney and getting things in order.

Hey now, you're a rock star, get the show on, get paid  And all that glitters is gold....

[catfish1957]

I don't know if it's so wise to make it public so soon before consulting with an attorney and getting things in order.

Yep...

1st point of order....  Changing your name to Mr Anon Y. Mous

[corbe]

   Half the phonebook in Chicopee, Mass now claims to be a long lost relative. Taxes will take the first half off the top before she even gets on the Greyhound out of dodge.

[mountaineer]

Here's an analysis of the taxation of lottery jackpots, written back in 2016:

Pretend You Won the Powerball. What Taxes Do You Owe?
January 12, 2016
Joseph Henchman

Update: The Powerball jackpot increased to $1.6 billion before the drawing, with a cash equivalent of $983.5 million. That increases the federal withholding amount to $246 million with another $144 million due when the winners file their tax returns. The winners are in located in California, Tennessee, and Florida, three states that do not tax lottery winnings. This leaves a true take of $594 million.

The Multi-State Lottery Association just upgraded tomorrow's Powerball jackpot to $1.5 billion, with a day to go. Yes, I've bought my tickets notwithstanding convincing evidence that the 1 in 292 million odds of winning make it essentially impossible.

But say you won and wanted to know your tax liability? Taxes are a big bite of the jackpot, and that doesn't even count the roughly $1 billion in lottery operation "profits" already going to spending programs (usually education) for the Powerball member states. But of the $1.5 billion number that everyone is throwing around, how much do you actually take home?

First you should definitely know that lottery winnings are taxed just like any other income – in this case, at the top federal and state income tax rates. Initially, the winner will have 25% withheld for federal taxes plus the state withholding tax (which in many states is the income tax rate but can be as little as zero in states like California or Pennsylvania, which do not tax lottery winnings). (This will be the state where you are domiciled – where you live and work. If you bought the ticket in a different state, be ready for them to battle over your tax money.) Then, when the winner files his or her taxes next April, they will have to pay the difference between what was withheld and what they owe.

So the current jackpot is $1.5 billion, assume a winner in a state with a 6% income tax who takes the lump sum rather than the annuity (although Josh Barro argues convincingly why you should take the annuity), and that the jackpot is not split between multiple winners. The lump sum option is $930 million, and $232 million will be withheld immediately for federal taxes and $56 million for state taxes. So the winner gets a check for $642 million, but will owe another $136 million when they file their federal taxes. (This number can be reduced a lot if the winner gives a large amount of his winnings to charity before the end of the year, but let's assume the winner doesn't do that.) That leaves $506 million in true take-home after taxes, or about 33% of the $1.5 billion.   ...

Rest of article at Tax Foundation

[CSM]

I just ran the numbers and it appears that the after tax amount is too high.  I would think that the current fed rate for that amount is at least 39%, plus her state income tax rate is 5.1%.  That means her withholding should be at least 44.1% (plus a little bit for Medicare and SSIP.)  They withheld 30% total from the lump sum amount.....

If I am correct, then she will have to write a $68M check next April.  If she is a Dem today, I bet she becomes a Republican before next May.

[Bigun]

I just ran the numbers and it appears that the after tax amount is too high.  I would think that the current fed rate for that amount is at least 39%, plus her state income tax rate is 5.1%.  That means her withholding should be at least 44.1% (plus a little bit for Medicare and SSIP.)  They withheld 30% total from the lump sum amount.....

If I am correct, then she will have to write a $68M check next April.  If she is a Dem today, I bet she becomes a Republican before next May.

If she has competent advisors she will pay much less than that!  Income averaging for starters.

[dfwgator]

Has Black Lives Matter demanded she give the money to a black person yet?

[Hoodat]

If she has competent advisors she will pay much less than that!  Income averaging for starters.

If she had competent advisors, the headline would have read "Texas Hospital Worker vacationing in Massachusetts Claims Record Lottery Jackpot"

[truth_seeker]

Income averaging expired in 1986. Now only for farmers and fishermen.

[kidd]

Yeah but I'm not going to win because I don't play.

But you do win. You just don't keep track of it.
Try this, so that you can answer to your pro-lottery friends:

I call this the "Lossery" game

Pick 5 sets of numbers, each set with 5 different numbers (1-69) and one Powerball number (1-26).
Use these same numbers for a year.
Twice a week (on Wednesday and Saturday), put $10 in a jar.
Then on Thursday and Sunday, check the internet to see if any of your numbers matched the drawing from the night before.
If you match either just the Powerball or the Powerball and one other number, take $4 out of the jar
If you match either the Powerball plus two other numbers, or three of the other numbers, take $7 out of the jar
If you match either the Powerball plus three other numbers, or four of the other numbers, take $100 out of the jar.

By the end of the year you should have about $900 in the jar.
You won $900 by not playing!

Take your pro-Lottery friends out for a nice meal, then bank the other $600 towards something fun.
Or screw em' and keep the full $900

Best part: Paying taxes on your winnings is entirely optional.

[Weird Tolkienish Figure]

Massachusetts said that they would provide "financial literacy" classes for her... I hope not at taxpayer expense.

[Hoodat]

Massachusetts said that they would provide "financial literacy" classes for her... I hope not at taxpayer expense.

Good grief, if anyone needs a financial literacy class, it would be the government.

National Debt Clock

[Restored]

I believe they pull the taxes before they hand over the money.

One of our cousin's won the "lottery" when she discovered she had been putting money into a 401k plan at work. When she discovered the money, she immediately quit and withdrew the money to start a tanning business. When the government demanded the penalty when she filed taxes next year, her defense was "But I already spent that money". She was incredulous that they didn't accept that reason. I think that is why they pull the taxes before you get the money.

[dfwgator]

  When the government demanded the penalty when she filed taxes next year, her defense was "But I already spent that money". She was incredulous that they didn't accept that reason. I think that is why they pull the taxes before you get the money.

Two simple words.  Two simple words in the English language: "I forgot!"

How many times do we let ourselves get into terrible situations because we don't say "I forgot"?  Let's say you're on trial for armed robbery.  You say to the judge, "I forgot armed robbery was illegal."  Let's suppose he says back to you, "You have committed a foul crime.  You have stolen hundreds and thousands of dollars from people at random, and you say, 'I forgot'?"  Two simple words: "Excuuuuuse me!!"

-Steve Martin

[Smokin Joe]

Income averaging expired in 1986. Now only for farmers and fishermen.

Yep. I sure could have used it in the runup to, and crash of, the latest oil boom. It would have saved me a pile.