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(NEXSTAR) — One other Mega Tens of millions jackpot is brewing — this time, a $607 million prize that ranks among the many largest in historical past. You gained’t, nevertheless, be taking dwelling $607 million if you happen to’re fortunate sufficient to win.
This jackpot has been constructing since two tickets — each sold at the same California gas station — landed a $394 million prize in December. After no ticket was capable of match the profitable numbers drawn Tuesday, the Mega Tens of millions jackpot rolled to an estimated $607 million.
In response to sport officers, that is solely the eighth time the Mega Tens of millions jackpot has surpassed $600 million. It now ranks because the eighth-largest jackpot in Mega Tens of millions historical past, standing behind a $648 million prize gained by two tickets, offered in California and Georgia, in 2013.
However if you happen to win, relying on the place you reside, the jackpot might really feel a lot, a lot smaller.
Right here’s why.
If you happen to’re conversant in large lottery prizes or different playing wins, you recognize you need to pay taxes in your prize. How a lot you pay will rely upon the place you reside.
That’s additionally true for Mega Tens of millions jackpots, no matter whether or not you’re taking the annuitized prize (the marketed variety of $607 million, on this case) or the money payout (estimated at $286.9 million forward of Friday’s drawing).
As quickly as you settle for your payout, a big chunk of it’s withheld for taxes.
Although some states do not have a state lottery tax withholding, all of them should withhold 24% in federal tax on prizes as giant as this jackpot. With extra taxes, you’ll see roughly 37% of your prize cash withheld, do you have to win.
At greatest, in keeping with an evaluation by USA Mega, a Mega Tens of millions jackpot winner will get about $383.7 million with the annuitized payout (30 annual funds that regularly enhance) or $180.8 million — that’s $223.3 million or $106.1 million you’d lose to taxes, respectively. That is just for states that don’t have a state lottery tax withholding, although you’ll doubtless need to pay taxes on it later.
Exterior of these few states, a jackpot winner (with a federal submitting standing of single) in Arizona will take dwelling probably the most cash: $173.6 million with the money possibility or about $368.5 million after the entire annuitized funds. Which means $113.3 million or $238.5 million, respectively, goes straight towards taxes.
These in New York state revenue the least, at $317.5 million with the annuitized funds or $149.5 million with the money lump sum. That may additionally fluctuate based on the city they dwell in. The tax invoice? For the annuitized possibility, $289.5 million, and for the money payout, $137.4 million.
The interactive map beneath reveals the estimated quantity a winner in every state would obtain after taxes have been withheld and all 30 annuitized funds have been issued. If you happen to hover over or faucet on a state, you’ll additionally see the estimated post-tax money prize payout a winner would get, in keeping with USA Mega’s evaluation.
You’ll discover a couple of states are grey on the map — these do not participate in Mega Millions.
It’s necessary to do not forget that these are estimates. The jackpot might go up or down earlier than the subsequent drawing. Plus, a jackpot may be break up between a number of winners. Whereas the percentages of profitable the Mega Tens of millions jackpot are roughly 1 in 302.6 million, more than 20 have been break up by two (and in a single case, 4) tickets that matched the profitable numbers.
That features the latest jackpot win in California late final yr. Solely as soon as earlier than, in 2011, has the jackpot been break up twice in a row, Mega Tens of millions information present.
If you happen to’re fortunate sufficient to win the jackpot, even if you happen to aren’t the only real winner, experts recommend transferring rapidly to assemble a workforce that features an legal professional, a tax advisor and a monetary advisor. In addition they encourage defending your ticket and conserving your victory a secret for so long as potential.
Which may be simpler in some states than others — solely a choose few let winners of a jackpot this large remain anonymous.
Able to attempt your luck? The following drawing will likely be held Friday at 11 p.m. ET.
Mega Tens of millions tickets are $2 every and offered in 45 states, the District of Columbia, and the U.S. Virgin Islands. Along with Fridays, drawings are held on Tuesdays at 11 p.m. ET. Gamers have a 1 in 24 probability of profitable any Mega Tens of millions prize.
