The winner will have to pay $225.9 million in taxes and will receive a net payment of $554.6 million if they choose to receive the money in one installment.
Photo: Dominique James/Shutterstock
$1.337 Million Mega Millions Jackpot Finally Claimed in Illinois after being purchased at a Speedway gas station in the city of Des Plaines.
However, not all of that money will end up in the winner’s pocket, since a good chunk of it could go to paying taxes, it all depends on how the winner wants the prize delivered to them.
And it’s that the tax payment depends on whether the Mega Millions winner chooses a cash payout of $780.5 million or annual payments totaling $1,337 million over 29 years.
Illinois currently withholds 24% federal and 4.95% state tax from lottery prizes.
If the winner decides to accept a one-time payment of $780.5 million, approximately $187.3 million in federal taxes would be withheld, in addition to $38.6 million in state taxes.
That would mean that the winner will have to pay $225.9 million in taxes and will receive a net payout of $554.6 million.
If the winner receives the full $1.337 million in annual dues and tax rates do not change over the next 29 years, approximately $320.9 million in federal taxes and approximately $66.2 million state taxes would be withheld. That means he would receive an estimated net payout of $949.9 million over 29 years.
Although the cash option is the most popular with winners, the annual payments are each 5% higher than the previous ones.
“This helps protect the lifestyle and purchasing power of winners in times of inflation,” the Mega Millions lottery states on its website.
This Mega Millions jackpot was one of the biggest ever after a winner from South Carolina scooped a jackpot of $1.537 million. in 2018.
“Congratulations to the Illinois Lottery for selling the winning Mega Millions jackpot ticket of $1.337 million. We are thrilled to have witnessed one of the biggest jackpots in Mega Millions history,” said Ohio Lottery Director Pat McDonald said in a statement.
“We can’t wait to find out who won and hope to congratulate the winner soon! Even better, this exciting jackpot race has had a significant positive impact on the good cause revenue generated by our member lotteries. »
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