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Of course, the marketed quantity is simply what you’d get when you have been to decide on to take your winnings as an annuity unfold over three a long time. The lump-sum money choice — which most winners select — for this jackpot is $403.8 million, as of noon Tuesday.
Regardless of the way you’d resolve to obtain your windfall, taxes would take a chew out of it.
$96.9 million in taxes can be shaved off money choice
Assuming you are like most winners and have been to decide on the money choice, a compulsory 24% federal tax withholding would cut back the $403.8 million by $96.9 million. That would cut back your take to $306.9 million.
However, you can count on to owe extra to the IRS at tax time. The prime federal revenue tax price is 37% and applies to revenue above $578,125 for particular person tax filers and $693,750 for married {couples} who file a joint tax return.
This implies that except you have been capable of scale back your taxable revenue by, say, making massive tax-deductible charitable contributions, you’ll owe one other 13% — or about $52.5 million — at tax time. That would carry your winnings right down to $254.4 million.
There additionally may very well be state or native taxes relying on the place the ticket was bought and the place you reside. Those levies vary from zero to greater than 10%.
Most Mega Millions gamers, although, will not have to fret about paying thousands and thousands of {dollars} to the IRS or state coffers: The odds of a single ticket matching all six numbers to land the jackpot is about 1 in 302.6 million.
Meanwhile, the Powerball jackpot is $291 million (with a money choice of $147.9 million) for Wednesday evening’s drawing. The probability of hitting the motherlode in that recreation is barely higher: 1 in 292 million.