Mega Millions Nears $750 Million—Here’s What The Winner Could Take Home - Forbes

ToplineThe Mega Millions jackpot soared to $743 million—the biggest lottery prize of the year so far—after no tickets matched all six numbers drawn on Tuesday night, although the eventual winner will take home a much smaller payout after taxes and deductions. The Mega Millions jackpot hit $743 million after Tuesday's drawing.Anadolu Agency via Getty ImagesKey FactsThe six numbers drawn on Tuesday night were 25, 37, 59, 68, 70 and gold Mega Ball 10. If a winner emerges in the next draw, they will have a choice between taking the $743 million split over 30 annual installments or a lump sum payment of $323.4 million—the preferred option for most winners. If the cash payout is chosen, the winnings will first drop to around $245.8 million after a mandatory 24% federal withholding is applied. The winner is likely to face a federal marginal rate as high as 37%, depending on their overall taxable income, further slashing their winnings to around $203.7 million. If the installment route is chosen, the winner’s annual payouts of around $24.8 million would drop to $15.6 million after the 37% federal marginal tax rate is applied. Depending on their state of residence, the winner could face additional taxes, as some states, such as New York, tax lottery winnings at 10.9%, while others, such as Texas, Florida, and California, don’t. A Mega Millions ticket buyer will have to overcome astronomical odds of 1-in-290.4 million to win the lottery. This is only slightly better than the Powerball jackpot’s even poorer odds of 1-in-292.2 million. The next Mega Millions jackpot draw will take place on Friday night. The Powerball jackpot, which has risen to $567 million, will have its next drawing on Wednesday night. This is on track to be the biggest lottery prize of the year so far. Of the prizes that have been claimed so far, the biggest of the year is a $533 million jackpot won by a Mega Millions ticket buyer from Illinois in March. The ongoing Powerball jackpot prize has soared to $567 million, but the biggest completed Powerball jackpot of the year so far is a $250.8 million prize won by a lottery player from Arkansas. Powerball Jackpot Soars To $567 Million—Here’s What The Winner Could Take Home (Forbes)