Although the jackpot for Friday’s Mega Millions drawing has grown to $1.35 billion — the second-highest in U.S. history — that’s not exactly how much the person who matches all six numbers will bring home.
For starters, the full jackpot amount is offered only to people who agree to take their winnings in payments spread out over 29 years, lottery officials say.
However, most winners decide to take the entire prize at once, which means they’ll receive less money. In this case, the winner would get $707.9 million of the $1.35 billion that’s being touted, per lottery officials.
But it gets even worse. The IRS immediately takes 24 percent of all lottery winnings over $5,000, lowering the lump sum value of Friday’s jackpot to $538 million, sources say.
Plus, that money will count as income, meaning the winner will pay even more taxes on the jackpot next April.
- How much money have you won playing the lottery?
- How much have you spent on lottery tickets?
Cincinnati: The Mega Millions Has Grown To 1.35 Billion was originally published on rnbcincy.com