With nobody hitting all of the profitable numbers in Tuesday evening’s Mega Thousands and thousands drawing, the jackpot has jumped once more.
Now at $393 million, the highest prize has been climbing for greater than two months. And whereas the percentages are stacked in opposition to gamers profitable — your likelihood is 1 in about 302 million — the IRS wastes no time getting a slice of each huge lottery win.
“Winners are shocked by how a lot is withheld in taxes from the preliminary cost, after which how way more is owed after they file their taxes the next yr,” mentioned Jason Kurland, a companion at Rivkin Radler, a regulation agency in Uniondale, New York.
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“All the numbers concerned in these large jackpots are staggering, and the taxes are not any exception,” mentioned Kurland, who helps huge lottery winners navigate their windfall.
Whether or not you’re taking the prize as an annuity unfold out over three a long time or as an instantaneous, decreased lump sum, 24% is withheld for federal taxes. Nonetheless, the highest marginal tax price of 37%…