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Here’s the tax bill on the $226 million Mega Millions jackpot

Source: https://cnbc.com/2019/11/25/heres-the-tax-bill-on-the-226-million-mega-millions-jackpot.html - Nov 26, 2019

If you’re daydreaming about how you’d celebrate winning the Mega Millions jackpot, remember that Uncle Sam has a way of crashing the party.

After about two months of twice-weekly drawings with no one matching all six numbers, the top prize has climbed to $226 million for Tuesday night’s drawing. Of course, the advertised amount isn’t what you’d end up with.

Whether you take the prize as an annuity spread out over three decades or as an immediate, reduced lump sum, 24% is withheld for federal taxes. However, the top marginal tax rate of 37% would mean owing a lot more.

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Category: General Business