It can be hard being a cold-hearted bitch, so sometimes I like to write about things that make me feel good. Like when one of the biggest Powerball jackpots in U.S. history is won by someone who appears to have really needed it– a cowboy from one of the poorest areas of the country who has been struggling to help his family make ends meet.
23 year old Neal Wanless has been helping his ranching family pay the bills by reselling scrap metal. No stranger to hard times, the Wanless Family’s trailer had recently been repossessed and they owe a couple thousand dollars in property taxes. A few weeks ago, he traveled to the nearby town of Winner, South Dakota (how’s that for irony?) and bought $15 worth of Powerball tickets.
Wanless was the sole grand prize winner of the $232 Million jackpot and will receive an $88.5 Million lump sum after taxes. He says he plans to “repay many times over” the kindnesses he and his family have received from neighbors who helped them out in these tough economic times. Wanless also says he plans to buy some land and donate part of the winnings to charity.
When asked about other plans for the money, he said he hasn’t decided yet, but promises that he “will not squander it.”
Aww that makes me happy.
That’s a buttload of taxes though! Or does he keep getting paid in stages after his lump sum? (And no, I don’t know why I care). :D
I’m pretty sure you can either choose to get less money in a lump sum or get the original amount drawn out over several years. Then the taxes are taken out.
I’m glad he won – he obviously needed it, and he seems so sweet!
Sorry but I still don’t get the whole taxes thing. He gets $232 millions and after taxes it’s just $88 millions? I know it’s still a shitload but man, that’s a fucking lot of money going to the state, specially for a country which prides itself in not having a very intervening government.
I don’t think its all taxes that are decreasing the amount – you agree to take less money if you want a one time payment – say 150 mil then the taxes are taken out of that – its because mmost lottos would go broke if they had to pay out the full amount on the one day …. so the deal is get it over say 20 years or take less now
Awesome story.
Lottery payouts are set up like an annuity; you get a certain amount of money per year for a set amount of years, or you can take a smaller lump sum now. Taxes then come off the top.
Priceless!
i know 88 million is a lot of money, but i feel like he and other lottery winners are getting ripped off. Seriously, its false advertising to say that they will win 232 million and then not be able to pay them that amount up front. I guess most winners are too happy to win and dont bother making a big deal about it, but I feel like someone should sue them. i dont care if they go bankrupt. also, why should he have to pay such hefty taxes? its not like people who earn that much money in the year have to pay that insane amount of taxes.
it’s 232 million, which he could collect over 30 years and it would be deducted 20 % for taxes OR he could accept half of it in a lump sum, and after taxes, would be 88 million.
Also, if you decide to gift money to people, you have to realize that the money you’re given well subsequently be taxed. Regardless if it had been originally taxed, the recipient will be taxed.
I smell a new reality series! “the unassuming millionare bachelor” lol
thats my future hubby right there
whore
The present value of the twenty year stream of payments is calculated.
That means (in theory) …if you invested the amount you receive on “Day 1″….you would have the same amount after 20 years of payments. (The “in theory” notation is quite important)
This Day 1 amount is taxed….just like anything else that is paid to a taxpayer.
If the winner accepted the 20 year payment stream (likely a better return on the “investment”) he would pay taxes each year on each payment.
Except…if he died….inheritance taxes will strip away far more…
I hope these people take the money and then disappear into filthy rich obscurity. Them and the their whole town. I really hope they don’t get caught up in the money and become idiots. The guy sounded half way smart though. Kinda sucks that that much of his prize goes for taxes. that seems ridiculous.
282 million = 88 million American currency calculated including tax.
My mom did home health for his mom she said they are a very nice family..and did need the money very badly..I’m origanlly from around there
my father was born and raised there i spent every summer on dads ranch/farm, this is where true americans come from.