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Jackpot winners get to decide between taking an instant lump sum or spreading out their winnings over three decades. Either way, the IRS will take you 24 percent before the money reaches you.
For the $ 548 million Mega Millions jackpot, the cash option is $ 309 million. For the $ 314 million Powerball, it's $ 179.4 million.
The 24 percent federal tax withholding would reduce Mega Millions' cash option by about $ 74.2 million, to $ 234.8 million, and Powerball's by $ 43.1 million, to $ 136.3 million. You also should anticipate Uncle Sam at tax time.
Additionally, you'll pay untaxed taxes. For states that take a piece, the rate ranges from 8.82 percent in New York to a low of 2.9 percent in North Dakota, according to the USAMega.com lottery.
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