If you were lucky enough to win the big prize, the IRS is going to come for you. While winners won’t get the awards at full value, they still stand to collect a sizable chunk of change. The jackpots will be subject to federal withholding, which is an immediate 24 percent before the winner ever receives a cent. Some states also impose a withholding tax, Clarence G. Eli Akhavan, partner and chair of the Private Client and Wealth Preservation Group at CKR Law, told FOX Business. The winnings will also be subject to state tax rates, which vary between 0 and 8. 82 percent, depending on your state of residence.
80 million in state income taxes. Winnings are not subject to the 3. 8 percent net investment income tax. 15,000 to as many people as you want without tax consequences. Akhavan cautions that winners may also face unexpected financial obstacles and may need further protection. Asset protection trust planning should be considered to help protect you and your family along with the newfound wealth. Quotes delayed at least 15 minutes.
Real-time quotes provided by BATS BZX Real-Time Price. Powered and Implemented by Interactive Data Managed Solutions. Company fundamental data provided by Morningstar. This material may not be published, broadcast, rewritten, or redistributed. You can change the location at any time. The jackpot in the latest Mega Millions drawing has grown to well over a half of a billion dollars, one of the biggest lottery payouts ever. If no one wins, the Mega Millions jackpot will get even bigger for the next drawing. According to the game’s official website, the odds of winning the jackpot are 1 in 302,575,350. Players pick six numbers from two separate pools of numbers — five different numbers from 1 to 70 and one number from 1 to 25 — or select Easy Pick. A player wins the jackpot by matching all six winning numbers in a drawing.
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