(Trends Wide Spanish) — The Mega Millions in the United States is increasing its jackpot and some lucky one could walk away with a considerable loot before the end of the year.
But there is something you should know before: if you win, the juicy figure will stop being so. In other words, you will take less money (much less). And this is so mainly due to two factors: the payment of a commission to the lottery and the payment of taxes.
How much money do I have left if I win the Mega Millions jackpot?
If you win the jackpot, there are two ways to collect it: in one installment or in 30 payments over 29 years. Since the first is the most common, let’s talk about that case.
By opting for a single payment, almost 60% is subtracted from the jackpot automatically by commission to the lottery.
And we are just beginning with the cuts. There’s still more.
A is payment 24% must be subtracted for federal taxes on lottery prizes where the winnings (less the wager) are greater than $5,000, according to the Internal Revenue Service (IRS).
Then you must subtract additional federal income taxes. In this case, the maximum federal marginal tax rate for 2022 is 37% for individual filers with income greater than $539,900 and for married couples filing jointly with income greater than $647,850, according to the IRS.
And state taxes must still be taken out, if they apply in the US state where you bought your Mega Millions ticket.
For example, according to an analysis of the USAMega.com site, in states like Florida, Texas or California, state taxes do not apply.
Whereas in Washington D. C. there is a 10.75% tax.
Click here to find out the states where taxes do apply for the prize, according to USAMega.com.
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(Trends Wide Spanish) — The Mega Millions in the United States is increasing its jackpot and some lucky one could walk away with a considerable loot before the end of the year.
But there is something you should know before: if you win, the juicy figure will stop being so. In other words, you will take less money (much less). And this is so mainly due to two factors: the payment of a commission to the lottery and the payment of taxes.
How much money do I have left if I win the Mega Millions jackpot?
If you win the jackpot, there are two ways to collect it: in one installment or in 30 payments over 29 years. Since the first is the most common, let’s talk about that case.
By opting for a single payment, almost 60% is subtracted from the jackpot automatically by commission to the lottery.
And we are just beginning with the cuts. There’s still more.
A is payment 24% must be subtracted for federal taxes on lottery prizes where the winnings (less the wager) are greater than $5,000, according to the Internal Revenue Service (IRS).
Then you must subtract additional federal income taxes. In this case, the maximum federal marginal tax rate for 2022 is 37% for individual filers with income greater than $539,900 and for married couples filing jointly with income greater than $647,850, according to the IRS.
And state taxes must still be taken out, if they apply in the US state where you bought your Mega Millions ticket.
For example, according to an analysis of the USAMega.com site, in states like Florida, Texas or California, state taxes do not apply.
Whereas in Washington D. C. there is a 10.75% tax.
Click here to find out the states where taxes do apply for the prize, according to USAMega.com.
