Saturday, January 4, 2014

Rocky Mountains Lottery Winner Benefits From New Tax Law

A Rocky Mountains resident got the year off to a good start by claiming a $1 million (US) Powerball prize.

James Mullins matched all the white balls, but failed to get the red Powerball in the December 28, draw. His after tax winnings were $692,000, but, had he claimed the prize before the New Year, the taxes would have a little more and his check would have been a little less.

Under state law, all lottery winnings greater than $600 used to be subject to 7% state income tax. This year the rate was cut to 5.8%, so Mullings found himself sitting pretty on an extra $12,000.