Check out the Whopping Amount That the Winner of Mega Millions Lottery is Set to Take Home

Check out the Whopping Amount That the Winner of Mega Millions Lottery is Set to Take Home
Cover Image Source: A man holds a bundle of Mega Millions lottery tickets | Getty Images | Photo by Justin Sullivan

Mega Millions and Powerball jackpots are easy opportunities to get lucky and take home millions in winnings, and have become a crucial part of American culture. Another reason for the increasing popularity is that the lottery entices people with enormous jackpots and prizes and the media does its part in hyping up the whole situation. The tickets are pretty easy to purchase with a minimum amount of $2 per ticket in stores, bus stands, and airports. Everyone buys a lottery ticket with the hope of winning millions and accomplishing their dreams, but only some have that luck.

Customers fill out Mega Millions lottery tickets outside of a convenience store in Lower Manhattan, October 23, 2018 in New York City. The $1.6 billion Mega Millions prize to be drawn Tuesday night is set to be the largest lottery prize in U.S. history. Image Source: Getty Images| Photo by Drew Angerer
Customers fill out Mega Millions lottery tickets outside of a convenience store in Lower Manhattan | Getty Images| Photo by Drew Angerer

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Now, the Mega Millions jackpot prize has surged to almost $900 million as per a USA Today report, and this is one of the highest rewards on record.  But what you will actually take home can differ depending on where you live and how you choose to receive your winnings. These huge jackpots are becoming a common addiction where people spend their savings just with the hope of winning something big. But the wins are all sunshine and roses. Here are lottery rules and taxes that apply to your winning amount, and how much amount you take home depends on your state rules.

So, how does the Mega Millions lottery work? First, you have to buy a ticket and then pick a bunch of numbers, hoping they'll be the lucky ones chosen in the next drawing. If you match all the numbers, you win the jackpot and if you match some of them there are small cash prizes that you can win. But the chances of that happening are pretty low. The interesting part of the game is that if the right numbers aren't picked and there are no winners, the jackpot prize gets even bigger and thrilling for the next drawing.



 

 

In order to win the jackpot, you need to hit and match all five white balls plus the gold Mega Ball. In case you match and win, you have two options—either take the full jackpot amount over 30 years or get an upfront cash payment, which is approximately 48% of the jackpot prize. Most of the winners prefer the second option as they get more money upfront. But lottery wins also involve taxes. The IRS automatically withholds federal taxes of 24%, but you'll likely end up paying about 37% total because the winning amount will cross the top tax bracket. Apart from this, some states also levy the tax on winning amounts, ranging from 2.5% to 10.9%. However, residents of these eight states can enjoy the money as they don't have to pay the state tax. These are California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

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Usamega.com has provided its lumpsum and annuity estimates in case you beat the winning odds in your state. In California, the Mega Millions lottery offers winners the choice between a lump sum payment of $240,575,812 or an annuity totaling $500,214,360. Meanwhile, in Florida, winners can opt for a lump sum of $240,575,812 or an annuity amounting to $500,214,360. Similarly, in Michigan, the options are a lump sum of $244,349,312 or an annuity of $466,544,360. Colorado follows suit, with a lump sum of $223,776,612 or an annuity of $465,366,360. Moving to Arizona, winners face a choice between a lump sum payment of $231,030,812 or an annuity totaling $484,414,360.

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