[ad_1]
You must also decide to take an immediate lump sum or spread your earnings over several decades. Anyway, Uncle Sam will take 24% before it reaches you.
For the $ 470 million Mega Millions jackpot, the cash option is $ 265 million. For the $ 282 million Powerball jackpot, it is $ 161.1 million.
The 24% federal withholding tax would reduce the Mega Millions cash option by approximately $ 63.6 million, to $ 201.4 million, and that of Powerball, from 38, $ 7 million, at $ 122.4 million. You should also expect to owe more to Uncle Sam at tax time.
In addition, you will have to pay state taxes on the money unless you live where the lottery winnings are not taxed. According to the USAMega.com lottery website, the rate ranges from a high of 8.82% in New York to a low of 2.9% in North Dakota.
Source link
