Super Lotto, Life, Odds and Taxes
The SuperLotto is the kind of lottery that can change people’s lives. The rules are simple; all a player has to do is to select five numbers between 1 and 47 and hand in the play slip to a lottery retailer and get their super lotto ticket printed out.
Each time you play, it will cost you about a dollar and you can even play the same five numbers that you selected on 20 consecutive days, in essence saving the money that would go in buying five tickets.
SuperLotto’s Catch 26
If you should win, you have the options of taking the entire lump sum cash payment or settle for 26 graduated annual payments. On the lump sum cash payment, you lose about 45 percent to 55 percent of your total amount to US federal taxes – 25 percent for US citizens and 30 percent for non-US citizens. Which is not to say that the graduated installment payment isn’t subject to tax; in fact the only benefit is that the winners have more time to plan their financial lives.
In case of any eventuality, such as the sudden death of the winner, the proceeds will go to any trustee that the winner might have nominated at the time of winning.
Evening SuperLotto’s Odds
SuperLotto is played twice a week, Wednesdays and Saturdays. Five winning numbers are selected from a set of 47 numbers and a ‘mega’ winner is selected from a separate set of 27 numbers. This current version of the 47/27 lottery began in 2000 and is still in current practice. SuperLotto and Mega Millions are the only two lotteries that still use a traditional mechanism for drawing the winning numbers. All other lotteries use a random number generator, a computational device that generates random numbers.
The highest payout ever made is $193 million, won by three tickets on February 16, 2002. The odds of wining in the SuperLotto are 1 in 23 and these odds are naturally higher for the jackpot prize; 1 in 41, 416, 3533. The minimum amount that can be won as a jackpot prize is $7 million. Let’s take a look at how the odds stack up in case the numbers vary:
* The odds of a six-number game winning a 6/49 lottery are 1 in 13,983,816.
* The odds of an eight-number full system winning are 1 in 499,422.
* The odds of a ten-number full system winning are 1 in 66,590.
* The odds of a twelve-number full system winning are 1 in 15,134.
If you do not win, there is still a little something to be gained: do not throw away any of your losing lottery tickets, as they are tax-deductible against your wins. According to researchers, a win of around $15,000 per year for 20 years is not likely to change a lottery winner’s lifestyle. However, if you win above $75,000 per year for 20 years, you are very likely to quit your job, make expensive purchases such as a house or a car and if you are really wise, invest a part of the money and live off the returns.
For more information, visit www.thelotter.com.
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