![]() ![]() The IRS takes 24% of winnings upfront and collects the rest when the next tax return is filed. ![]() If the $707.9 million cash option was taken, the winner would pay $261.9 million in federal taxes and take home $446 million. With a federal tax rate of 37%, a Mega Millions winner would pay a total of $499.5 million in federal taxes and pocket $850.5 million by 2051 if the total $1.1 billion payout was chosen. $693,750 for a married couple filing jointly.Study the Slot You are Going to Play Step 7. ![]() Understand Slot Variance / Volatility Step 6. ![]() Give Preference to Classic Slots Over Progressive Jackpot Slots Step 4. Without other deductions or contributions, a winner could pay a tax rate of up to 37% this year under the top federal income tax rate, which is based on income of more than: Choose Best Slot Machines to Play Step 2. Tax experts say exact tax amounts can't be precisely calculated since tax brackets shift over time and the final tax amount depends on the jackpot winner's income level. The total federal tax rate, however, is higher If the cash option of $707.9 million is taken: If the total $1.35 billion payout is chosen: That's a big chunk out of either payment choice. Regardless of which option the player takes, the IRS takes a minimum 24% federal withholding tax upfront on lottery winnings. The single winner could take the total $1.35 billion in 30 payments over 29 years or go for the one-time cash option – in this case, $707.9 million – which is what most winners choose. How much tax on a $1.35 billion lottery win? The winner can choose to take the full amount in annual payments over 29 years or a smaller lump sum immediately in cash. What to know if you hit the jackpot: Here are the first steps you should take after winning. Winnings are reported to federal and state tax agencies, and tax rates are based on taxable income. Find answers to questions about winning the Illinois Lottery and learn how and. The sole winner, however, won't take home any money without paying substantial taxes on it first. It's also the fourth time since October 2018 that winnings have exceeded $1 billion. One winning ticket for Friday's Mega Millions jackpot – a prize of an estimated $1.35 billion – was sold in Maine and tax officials are probably just as excited as the ticket holder, who has not yet been identified.ĭepending on choice of payout, the winner may have to wait three decades to become a billionaire, even though the jackpot is the second-largest in the lottery's history. ![]()
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