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Five things to do first if you win big in Powerball or Mega Millions

Jackpot winners get to resolve between taking a direct lump sum or spreading out their winnings over three many years. Either method, the IRS will take 24 % earlier than the cash reaches you.

For the $548 million Mega Millions jackpot, the money possibility is $309 million. For the $314 million Powerball, it is $179.four million.

The 24 % federal tax withholding would cut back Mega Millions’ money possibility by about $74.2 million, to $234.eight million, and Powerball’s by $43.1 million, to $136.three million. You additionally ought to anticipate owing extra to Uncle Sam at tax time.

Additionally, you’ll pay state taxes on the cash until you dwell the place lottery wins are untaxed. For states that do take a chunk, the speed ranges from a excessive of eight.82 % in New York to a low of two.9 % in North Dakota, in accordance to lottery website USAMega.com.

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About Virgie Powell

Virgie B. Powell writes for Reiterment Planning and Tax Advice sections in AmericaRichest.

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