Mega Millions Jackpot is Hitting $800 Dollars, Taxes Will Apply

The Mega Millions jackpot surged to $792 million, marking it as the second-largest jackpot prize of the year thus far, as no tickets matched all six numbers drawn on Tuesday night. However, the eventual winner will receive a substantially reduced payout after accounting for taxes.

Here are the key points:

  • If a winner emerges in the upcoming draw, they have the option to receive the $792 million jackpot spread over 30 annual payments or opt for a lump sum cash prize of $381.8 million, which is typically the preferred choice.
  • The lump sum payment would decrease to $290.2 million after a mandatory federal tax withholding of 24%.
  • Further reducing the winnings, the winner might face a federal marginal rate of up to 37%, depending on their taxable income, resulting in a final payout of $240.5 million.
  • Opting for the installment route would lead to annual payments of $26.4 million, which would decrease to $16.63 million if the 37% federal marginal rate is applied.
  • Additionally, the winner may be subject to additional taxes from their state of residence, with some states like New York imposing a 10.9% tax on lottery winnings, while others like Texas, Florida, and California do not.
A Mega Millions ticket

The odds of winning the Mega Millions jackpot stand at an astounding 1-in-302.6 million, even worse than the already slim odds of 1-in-292.2 million for the Powerball jackpot.

In terms of background:

  • The Powerball prize increased once more on Monday night as no tickets matched all six numbers drawn. The largest jackpot of the year thus far was the $842.4 million Powerball prize won by a single ticket holder from Michigan on New Year’s Day.

The next drawing for the Mega Millions jackpot is scheduled for Friday night, while Powerball will hold a drawing for a $559 million jackpot on Wednesday night.

Josh Alba
Josh Alba
Josh Alba stands at the forefront of contemporary business journalism, his words weaving narratives that illuminate the intricate workings of the corporate world. With a keen eye for detail and a penchant for uncovering the underlying stories behind financial trends, Josh has established himself as a trusted authority in business writing. Drawing from his wealth of experience and relentless pursuit of truth, Josh delivers insights that resonate with readers across industries.
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