Connect with us

Hi, what are you looking for?

Economy

The mega jackpot of $ 510 million: Here’s the tax

The mega jackpot of $ 510 million: Here's the tax

Mega Millions award went up to $ 510 million This week, after no winner was announced during Tuesday’s drawing.

The mega prize is the eighth time the jackpot has exceeded $ 500 million.

The game officials also noted that three of the biggest Mega Millions prizes were won in January.

However, after the IRS collects a large chunk of the winnings, the award will be significantly smaller.

«  Strain the jackpot  » cut lottery ticket sales and cut prize money

The winning ticket owner faces two options: either take the money in the form of a lump sum or an annual payment, which will be paid out over a period of about 30 years.

Under the cash option, which is the most popular option, the jackpot is subject to the federal discount, which is 24% immediately before the winner receives a cent. So in this case, the total amount of winnings would be estimated at $ 377.4 million before taxes.

This would reduce the award value by $ 90.5 million.

The IRS will also likely charge earnings in the highest federal income bracket, which is 37% for people with incomes over $ 500,000. The winner will be indebted for any remaining difference between this tax rate of 37% and the federal withholding rate of 24% when the winner submits tax returns at the end of the year, which will deduct another $ 49 million.

Click here for the FOX BUSINESS app

READ  British Airways et Qatar Airways lancent la carte de crédit Avios-Earning en Inde

This means about $ 139.5 million will be deducted from federal taxes and the total grand prize value of roughly $ 238 million.

Depending on where the winner lives, the grand prize can also be subject to state taxes at rates ranging from 8.82%.

Gains are not subject to the 3.8% net investment income tax.

If the winner plans to donate money, they are allowed to donate up to $ 15,000 to as many people as they wish without tax consequences.

The next draw will be held on Friday.

Click to comment

Leave a Reply

Votre adresse e-mail ne sera pas publiée. Les champs obligatoires sont indiqués avec *

You May Also Like

Tech

C’est enfin là ! La conférence mondiale annuelle des développeurs d’Apple débutera lundi avec le discours d’ouverture traditionnel à 10h00 PST. Lors de cet...

Tech

F-Zero GX (Dauphin) sur Steam Deck (image: Via Twitter) Valve vient de sortir le Steam Deck – un nouvel ordinateur portable de jeu. Il...

Tech

Parallèlement à la mise à niveau de la puce A15 et plus encore, l’iPhone SE bénéficie d’une amélioration de la batterie par rapport à...

World

biélorusse la sprinteuse Kristina Tsimanskaya Jeudi, elle a déclaré qu’elle avait pris la décision de fuir Tokyo en Pologne après avoir reçu des avertissements...

Copyright © 2020 ZoxPress Theme. Theme by MVP Themes, powered by WordPress.