How Much It’ll Cost The Winner Of The Lottery Mega Millions 1.13 Billion
The winner of last week’s $1.13 billion Mega Millions lottery jackpot will actually bring home less than half of that total.
Winning more money that you can reasonably spend in a lifetime doesn’t come without headaches and huge tax bills.
The amount of money the winner of the March 26th drawing of the Mega Millions lottery jackpot will have to fork over a ton of cash to the federal government and the New Jersey State government.
The winning ticket was sold at ShopRite Liquors on Route 66 In Neptune. The winner will probably not come forward as New Jersey allows winners in the state to remain anonymous. Thank goodness!
We all have plans on what we would do with such a huge windfall.
Like most people, I’d pay off any debt I’ve accumulated. Maybe take a dream vacation, and take care of my family.
Outside of my personal finances, I’d help the homeless here in New Jersey by making a huge donation to Just Believe, an organization in the process of raising funds to build a homeless shelter in Ocean County. I would also make donations to our veterans, and the elderly, both of whom seem to be overlooked here in the Garden State.
How much would I have to pay if I were the lucky winner of the Mega Millions Lottery Jackpot of 1.13 Billion dollars?
The final prize from the nearly 1.13-billion-dollar jackpot will depend on whether the winner opted for the cash lump sum or the annuity option. The cash option would pay $536.6 million in a lump sum, according to Mega Millions.
Most people automatically choose the lump sum. If you choose the annuity, it involves escalating payments over a 30-year period.
According to the Daily Voice, If the winner were to take the $536.6 million cash option, they would first have to pay 24 percent in federal taxes, according to the NJ Lottery winner’s guide. That would mean about $128,784,000 would go to the IRS, leaving roughly $407,816,000 for the winner.
From there, the state would take its turn withholding eight percent of the original lump sum. That would give New Jersey about $42,928,000 in taxes.
The tax payments would leave the lottery winner with a final total of roughly $364,888,000. That’s about one-third of the original jackpot and roughly $763,112,000 going to taxes.
The annuity’s tax process would be a little different, according to lotto tracking website USA Mega. Federal taxes would be taken at a 37 percent marginal rate and 10.75 percent would be withheld for state taxes.
That means the pre-tax payment of more than $16.9 million would end up as roughly $8.9 million in the first year. The payments would rise by five percent each year.
In the 30th year, the final pre-tax payment of more than $69.9 million would become more than $36.6 million after taxes. Under the annuity, the winner would receive about $590,634,000 — more than half of the original jackpot — and pay roughly $537,366,000 in taxes.
