Mega Millions Jackpot Nears $500 Million: Here’s How Much The Winner Would Take Home After Taxes (2024)

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Mega Millions Jackpot Nears $500 Million: Here’s How Much The Winner Would Take Home After Taxes (2024)

FAQs

Mega Millions Jackpot Nears $500 Million: Here’s How Much The Winner Would Take Home After Taxes? ›

If a lucky Mega Millions winner opts for the lump sum route their cash option would drop to roughly $172 million after a mandatory 24% federal tax withholding is applied.

How much is a 500 million lottery after taxes? ›

A federal marginal rate as high as 37%, which depends on the winner's taxable income and large tax deductions such as charitable contributions, would reduce it to as low as $145.6 million. State taxes could continue to cut away at the prize, though not all states tax lottery winnings.

How much does the IRS get from the Mega Millions jackpot? ›

Before seeing a penny of the jackpot, the winner will pay a 24% mandatory upfront federal withholding to the IRS. If they choose the $536.6 million cash option, the 24% withholding automatically reduces the prize by about $129 million.

How much taxes would be taken out if you won a million dollars? ›

What are the lump sum lottery winnings after taxes? The federal tax on the lottery is determined by the federal marginal rates, which is 37 percent in the highest bracket. In practice, there is a 24 percent federal withholding of the gross prize, plus the remaining tax, based on your filing status.

How much would you get if you won $100 million dollars? ›

So, you may ask, "How much do I get if I win the Powerball?" It is about 52 percent of the total jackpot amount (before taxes). For example, if the Powerball jackpot is at $100 million, the cash value would be around $52 million.

Do lottery winnings affect social security? ›

Your Social Security benefits will not be reduced as a result of winning the lottery, regardless of whether or not you have reached your full retirement age.

How much is the tax on the 600 million lottery? ›

The cash prize amount will drop to around $223 million after a mandatory federal tax withholding of 24% is deducted. Depending on the winner's final taxable income, they may face up to a 37% federal marginal rate—further cutting down their fortune to $184.8 million.

How much money will the Mega Millions winner take home? ›

A Mega Millions jackpot winner will take home much less than the advertised jackpot amount, thanks to taxes. Whoever wins a Mega Millions jackpot will still take home a good chunk of change, but they can say goodbye to at least 24% of their winnings right away. And they will have to pay the IRS even more later.

How much did the $2 billion lottery winner get after taxes? ›

Senior Contributor. I focus on taxes and litigation. The winning Powerball ticket was sold at Joe's Service Center in Altadena, California, entitling the ticket holder to a massive $2.04 billion jackpot.

What is the 30 year payout for the Mega Millions? ›

If the $1.13 billion winner decides to receive their winnings in a 30-year annuity, their average amount each year would be $19,722,646 and would overall get $591,679,380 after 30 years, according to USA Mega.

Is it better to take the lump sum or annuity lottery? ›

If you want your winnings right away, you'll want to select the cash option, but if you want more money in the end, you may prefer the annuity option.

What is the federal tax on $1000000? ›

For example, if you're single and earn $1 million in taxable income, you'll fall into the highest tax bracket, which is currently 37%. This means that you'll pay 37% in federal income taxes on the portion of your income that exceeds the threshold for the highest tax bracket.

What is the tax on 100 million dollars? ›

Even after almost fifty years of tax cuts for the rich, $100 million puts you in the highest tax bracket both federally and in those states (most) which have income taxes. For the feds, a single person pays $174,238.25 on the first $578,125 of net income after deductions, plus 37% of the amount over that.

Can you put 100 million in the bank? ›

You can deposit up to $100 million for each account type.

How long does it take for lottery winnings to hit your bank account? ›

If you elected the cash option or if your prize is only offered in a single payment, your check should arrive approximately six to eight weeks from your claim date. If your prize is to be paid in installments, your first payment should be available within six to eight weeks from your claim date.

How much tax is taken from the 700 million lottery winnings? ›

The cash payout drops to $248.7 million after a mandatory federal tax withholding of 24% is applied. The winner may then face a 37% federal marginal rate—depending on their taxable income—dropping their winnings further to $206.2 million.

How much is the 900 million lottery winnings after taxes? ›

If the lump sum payment is chosen, the prize amount will drop to $341.77 million after a mandatory federal tax withholding of 24% is applied. Depending on their taxable income, the winner could face a federal marginal rate as high as 37%, which would further slash the winnings to $283.31 million.

How much is the $2 billion lottery after taxes? ›

After taxes, Castro walked away with $628.5 million, USA TODAY reported. Though he declined to appear publicly when he claimed the grand prize two months after the drawing, Castro complimented California public schools "as the real winner" and said in a written statement he was shocked and ecstatic.

How much tax does the IRS take from lottery winnings? ›

Lottery winnings, considered taxable income, are subject to both federal and state income taxes. The Internal Revenue Service (IRS) imposes a federal tax rate of 24%, and California's state income tax, with rates ranging from 1% to 13.3%, adds an additional layer of taxation.

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