Mega Millions: Ticket Sold In Florida Wins Record $1.58 Billion Jackpot—Here’s How Much The Winner Will Take Home After Taxes (2024)

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Mega Millions: Ticket Sold In Florida Wins Record $1.58 Billion Jackpot—Here’s How Much The Winner Will Take Home After Taxes (2024)

FAQs

Mega Millions: Ticket Sold In Florida Wins Record $1.58 Billion Jackpot—Here’s How Much The Winner Will Take Home After Taxes? ›

The winning ticket holder can choose between receiving the $1.58 billion record payout spread over 30 annual installments or a lump sum amount of $783.3 million—often the more popular choice. The lump sum payment will first face a mandatory federal tax withholding of 24%, leaving the winner with $595.3 million.

How much will a Mega Millions winner get after taxes? ›

Eight states, including California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming, do not levy income taxes on lottery winnings.

How much did Edwin Castro get after taxes? ›

After taxes, he reportedly walked away with a lump sum of US$628.5 million on Valentine's Day last year and swiftly became a media darling for how he has been spending his fortune.

How much taxes does Florida take out of lottery winnings? ›

Florida. Florida also doesn't tax lottery winnings, so your Powerball prize will only be subject to federal taxes. (That's good news since a recent $1.58 billion Mega Millions winning ticket was sold in the state.) Florida is also one of nine states that don't have a personal income tax.

How much do you get after taxes if you win a million dollars? ›

In practice, there is a 24 percent federal withholding of the gross prize, plus the remaining tax, based on your filing status. For example, if your gross prize is $1,000,000, you need to pay $334,072 in total taxes ($240,000 federal withholding, plus the remaining $94,072 for single filing status in 2021).

What is the federal tax withholding on lottery winnings? ›

Lottery agencies typically withhold 24% on winnings over $5,000 immediately, which could help offset some of the tax burden you may face on your windfall.

How much is the 1.3 billion lottery winner getting after taxes? ›

Key Facts. The winner will now get to pick between receiving the $1.13 billion payout spread across 30 annual payments in 29 years or a lump sum cash prize of $537.5 million—usually the popular pick among winners. The cash prize will drop to $408.5 million after a mandatory federal tax withholding of 24% is deducted.

How much will a $2 billion lottery winner take home? ›

Senior Contributor. I focus on taxes and litigation. The winning Powerball ticket was sold at Joe's Service Center in Altadena, California, entitling the ticket holder to a massive $2.04 billion jackpot.

Who is the richest lottery winner? ›

The largest Powerball jackpot in US history was won by Edwin Castro in Southern California, totaling $2.04 billion. The ticket was sold in Nov. 2022 at Joe's Service Center in an unincorporated community near Los Angeles. Here is a list of the largest jackpots won in the US and the state where the tickets were sold.

What states do not pay tax on lottery winnings? ›

All states except the following eleven, along with Puerto Rico and the U.S. Virgin Islands, do not tax national lottery winnings: Alaska, California, Delaware, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. All other states do tax national lottery winnings.

Do lottery winnings affect social security? ›

Firstly, lottery winnings are considered unearned income, so they do not directly affect Social Security benefits, which are primarily concerned with earned income, like wages from a job. This means that the $10,000 lottery win will not reduce your friend's Social Security benefits.

Can you remain anonymous in the Florida lottery? ›

Florida Lottery winners cannot remain anonymous. Florida law mandates that the Florida Lottery provide the winner's name, city of residence, game won, date won and amount won to any third party who requests the information; however, Florida Lottery winners' home addresses and telephone numbers are confidential.

How much does the federal government take if you win the lottery? ›

All winnings over $5,000 are subject to tax withholding by lottery agencies at the rate of 24%. This potentially leaves a gap between the mandatory amount of withholding and the total tax you'll ultimately owe, depending on your tax bracket.

How much does the IRS take if you win $1 million dollars? ›

Before you see a dollar of lottery winnings, the IRS will take 25%. Up to an additional 13% could be withheld in state and local taxes, depending on where you live. Still, you'll probably owe more when taxes are due, since the top federal tax rate is 37%.

How long does it take to get your money if you win the lottery in Texas? ›

Please allow 4-8 weeks for claims that are mailed in to be processed. Above $5 Million, all Lotto Texas®, Powerball® and Mega Millions® jackpot prizes, and prizes paid by annuities must be processed at Texas Lottery headquarters in Austin.

How much does the IRS get from the Mega Millions jackpot? ›

Most jackpot winners go with the lump sum, which means they get the “cash value” of that jackpot. For Tuesday's Mega Millions $1.13 billion jackpot, the cash value was $537.5 million. Right away, 24% of that cash value is withheld for federal taxes and goes to the IRS, TurboTax explains.

How much will the Mega Millions annuity payout after taxes? ›

If the player took the annuity, they would receive 30 payments over 29 years with the disbursement increasing at a rate of 5% per year. With a $1.35 billion prize, the first payment would be about $20.3 million, of which approximately $4.8 million would go toward taxes -- leaving them with a net of about $15.5 million.

How much will the 1.13 billion annuity payout? ›

If the $1.13 billion winner decides to receive their winnings in a 30-year annuity, their average amount each year would be $19,722,646 and would overall get $591,679,380 after 30 years, according to USA Mega.

How much money do lottery winners actually get? ›

When it comes to lottery prizes, the first thing that happens after you turn in that winning ticket and get your lump sum is that the federal government takes 24% of the winnings off the top. But the payments don't end there. You will owe the rest of the tax — the difference between 24% and 37% — at tax time next year.

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