$ 1 Billion Mega Millions Jackpot

Someone in the United States will probably receive life-changing amounts in the near future. The exact amount depends on which state they are in.

Prior to the next lottery on Friday Mega Millions Lottery Jackpot passed $ 1 billion mark.. The award has been growing for three months and is just a $ 4 billion lottery jackpot in US history.And for Lucky few For those who manage to hit such a huge jackpot, the big lottery win always follows immediately. High tax invoice..

Lottery prizes are subject to a 24% federal tax withholding. If someone wins the current Mega Millions jackpot and chooses a $ 62.5 million cash option instead of receiving payments on a 30-year or longer pension, a federal tax of approximately $ 144.6 million will automatically be levied. You will be billed.

The federal maximum tax rate is 37%, so when it’s time to pay the annual tax, the winner will be in debt even more.

But that’s not all. Tax laws on income and lottery prizes vary from state to state. In other words, the overall tax on the lottery jackpot can be even higher depending on where you buy your winning ticket.

In these 10 states, there is no obligation to pay state taxes on lottery prizes.

  • California
  • Delaware
  • Florida
  • New hampshire
  • Nevada
  • South dakota
  • Tennessee
  • Texas
  • Washington
  • Wyoming

In most of the United States, lottery prizes are taxed like regular income, but not in California and Delaware.Lottery prizes in these two states are not eligible California’s 12.3% Income Tax Rate Also 6.6% rate of Delaware..

The other eight states on the list do not have a comprehensive income tax law at all. If you live there, your lottery prizes will be considered income, but will not be subject to additional tax beyond the federal tax rate. Alaska also doesn’t have a comprehensive income tax law, but alongside Alaska, Hawaii, Nevada, and Utah, it’s one of the five states in the United States that doesn’t sell lottery tickets.

Other US states are subject to certain state tax bills. North Dakota (North Dakota) is one of the states where the personal income tax rate applicable to lottery prizes is relatively low.2.9%), Pennsylvania (3.07%) And Indiana (3.23%).

In comparison, New York imposes a tax rate of 8.82% on lottery prizes. Pay an additional 3.8% In New York City.

If you purchase a winning ticket outside your own country Income tax rate The state in which you purchased the ticket — and you must list your prize as taxable income in the state in which you live.

If your state has a higher income tax rate than the state in which you purchased your winning ticket, the state-wide tax rate may reflect the higher of these two rates.that’s why Experts usually advise For buying lottery tickets in states where the income tax rate is higher than in your own country.

Financial experts are also determined If you win a major lottery jackpot, you need to rely on expert advice. This means hiring a team of advisors that may include lawyers and financial and tax advisors.

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