Feeling lucky? As the nation eagerly anticipates the announcement of the $279 million Mega Millions lottery winner, one Californian may already be celebrating a smaller, yet still significant, windfall.
A ticket worth $548,195 was sold at a Vons on North Figueroa Street in the Eagle Rock neighborhood of Los Angeles, according to California Lottery’s website on Friday night. This news coincided with the Mega Millions drawing for a top prize of $251 million, held on the same evening.
The winning numbers for the July 19 drawing were:
- 10, 17, 23, 50, 67
- Mega Ball: 3
While no one claimed the $251 million prize, the jackpot has now risen to $279 million, with the next drawing scheduled for Tuesday, July 23.
How Much Do You Win After Taxes?
Dreaming about what you’d do with the jackpot money is exhilarating, but it’s crucial to consider the taxes that will significantly reduce your winnings. Here’s a breakdown of how much you can expect to take home after taxes.
Factors Influencing Your Payout
- State Taxes: Whether you need to pay state taxes depends on where you live. Some states, like California, do not tax lottery winnings, while others do.
- Payout Options: Winners can choose between a lump-sum payment or an annuity payout. The lump-sum option is a one-time payment, whereas the annuity option provides an immediate payment followed by 29 annual payments.
Lump Sum vs. Annuity
According to the Mega Millions website, the annuity option includes one immediate payment, followed by 29 annual installments, a method similar to the Powerball payout structure. Here’s a simplified comparison:
| Option | Initial Payout | Annual Payments | Total Over 30 Years |
|---|---|---|---|
| Lump Sum | $179.4 million | N/A | $179.4 million |
| Annuity | $9.3 million | $9.3 million/year | $279 million |
Tax Implications
- Federal Taxes: The IRS automatically withholds 24% of lottery winnings over $5,000. For the $279 million jackpot, the lump-sum payout would be approximately $179.4 million. After the 24% federal tax, you’d take home about $136.4 million. However, the top federal tax rate is 37%, so you could owe additional taxes at year-end.
- State Taxes: Depending on the state, additional taxes may apply. In states with high tax rates, winners could lose a significant portion of their prize to state taxes.
Planning for the Future
Winning the lottery can be life-changing, but it’s essential to plan wisely. Consulting with financial advisors and tax professionals can help you make the most of your winnings and secure your financial future.
FAQs:
What should I do if I win the lottery?
Immediately sign the back of your ticket, keep it safe, and consult with financial and legal advisors before claiming your prize.
How long do I have to claim my prize?
It varies by state. In California, winners have 180 days to claim their prize.
Are lottery winnings considered income?
Yes, lottery winnings are considered taxable income by the IRS and most states.
Can I remain anonymous if I win?
It depends on the state. Some states allow winners to remain anonymous, while others require public disclosure.
