Mega Millions $1 Billion Ticket Sold: Tax Obligations for the Winner
A Mega Millions ticket sold in Georgia has won a staggering jackpot of $980 million. This extraordinary prize marks one of the largest in the lottery’s history, making it the eighth-largest since its inception in 2002. However, the winner will face significant tax obligations.
Mega Millions Winning Details
The winning numbers drawn include 1, 8, 11, 12, 57, and the gold Mega Ball 7. The fortunate ticket was purchased from a Publix in Newnan, Georgia. This jackpot had been accumulating since a previous winner in Virginia took home $348 million in June.
Prize Options
The winner can select between two options for their $980 million prize:
- 30 Annual Installments: Total prize amount spread over 30 years.
- Lump Sum Cash Payment: A one-time payout of $452.2 million, the most popular choice among winners.
Choosing the lump sum will reduce the prize to approximately $343.7 million after a mandatory federal withholding of 24%. Furthermore, depending on their income, the winner could be subject to a federal marginal tax rate of up to 37%, bringing the final amount down to around $284.9 million.
Tax Implications in Georgia
Georgia assesses lottery winnings as ordinary income, imposing a flat income tax rate of 5.19%. Hence, the winner should anticipate an additional tax payment nearing $23.5 million on the lump sum amount.
Final Amount after Taxes
If the winner opts for the lump sum payment, the estimated take-home amount after all taxes is approximately $261.4 million. This calculation considers a total tax burden of about $190.8 million.
Odds of Winning
The odds of successfully matching all six Mega Millions numbers stand at 1 in 290.5 million, underscoring the rarity of such a monumental win.
As anticipation builds around the potential impact of this large jackpot on the winner’s life, understanding tax obligations is critical. These financial responsibilities can significantly affect the amount of money retained after the win.
