[ad_1]
On Friday morning, people in the Chicago area were lining up slot machines for the chance to become a billionaire.
The multi-state jackpot of Mega Millions is now $ 970 million. A winner could claim this prize as of Friday night, at the time of the next draw.
But some people get their tickets for free. The Illinois Lottery intended to distribute 970 tickets outside the Thompson Center in downtown Chicago from 10:00 am to 1:00 pm.
The odds of winning Mega Millions are 1 in 302.5 million.
Here are some answers for someone who holds this popular lottery ticket for what would be the second largest lottery jackpot in the history of the United States.
I HAVE WON. NOW WHAT?
Lottery officials recommend that winners take a deep breath, put their winning ticket in a safe place and consult a reputable financial planner before heading to the lottery headquarters. Their first decision is to choose between the $ 548 million cash option, or an annuity, with a down payment and annual payments over 29 years. Almost all winners opt for cash, but the annuity has advantages, as it slightly reduces the tax bill and provides a stable income stream that increases by 5% per year.
HOW LONG TIME DO I ASK FOR THE JACKPOT?
The states have different rules, so depending on where you bought the ticket, you have 180 days to a year.
GET MY MONEY IMMEDIATELY?
No, you can not just cash one of those oversized checks on all of the winner's pictures. The speed of payment also varies by state, but a week or two is common.
Can I keep my name secret?
Winners may remain anonymous in six states: Delaware, Kansas, Maryland, North Dakota, Ohio and South Carolina. In Arizona, people who earn more than $ 600 can keep their name secret for 90 days after claiming a prize, but after that, the names are public documents. In Michigan, the winners are anonymous unless they win Mega Millions or Powerball prizes.
WHAT IS TAXES?
For winners of $ 5,000 or more, all states automatically deduct 24% of federal taxes, but taxes vary considerably. Some large states, including California, do not tax their lottery winnings, and some, like Texas, do not have personal income taxes. For others, the state is taking a bite, especially in New York, where a winner should pay a 8.8% tax. Residents of New York City would pay an additional fee of 3.9%. In general, taxes absorb about half of the gains.
Melissa Labant, an expert in tax policy at the American Institute of Certified Public Accountants, said the winners should realize that, if taxes are initially withheld in awarding prizes, it will probably take more money at the time of the tax return, because people are suddenly up to 37% installment tax.
"It surprises people," she said. "You must be ready to write another check to the IRS in April."
WHAT ARE MY TAXES IF I DO NOT LIVE IN THE STATE OR I PURCHASED THE TICKET?
This can be complicated, but most of the time, the winners pay the taxes where they bought the ticket, and then get credit for their taxes in their home country. The final tax bill may depend on the state where you live tax at a higher or lower rate than where you bought the ticket. The rules vary from state to state. It is therefore an interesting subject for this financial planner.
The top 10 biggest American jackpots
Here is an overview of the 10 biggest US jackpots won and the states where the winning tickets were sold:
1. $ 1.6 Billion, Powerball, January 13, 2016 (three tickets, California, Florida, Tennessee)
2. $ 758.7 million, Powerball, August 23, 2017 (a ticket, from Massachusetts)
3. $ 656 million, Mega Millions, March 30, 2012 (three tickets, from Kansas, Illinois and Maryland)
4. $ 648 million, Mega Millions, December 17, 2013 (two tickets from California and Georgia)
5. $ 590.5 million, Powerball, May 18, 2013 (a ticket, from Florida)
$ 587.5 million, Powerball, November 28, 2012 (two tickets from Arizona and Missouri)
7. $ 564.1 million, Powerball, February 11, 2015 (three tickets, from North Carolina, Puerto Rico and Texas)
8. $ 559.7 million, Powerball, January 6, 2018 (one ticket, New Hampshire)
$ 543 million, Mega Millions, July 24, 2018 (one ticket, California)
10. $ 536 Million, Mega Millions, July 8, 2016 (a post from Indiana)
Source link
