The winner of the October 23rd, 2018 Mega Millions jackpot was announced as a South Carolina resident. They received a lump-sum cash payment of $877,784,124, which was the largest jackpot payout to a single winner in U.
S. lottery history. The first-time winner chose to remain anonymous and the South Carolina Education Lottery Commission offered no other details beyond their victory. Before federal taxes were taken out, the winner took home a total of $877,784,124.
Did anyone claim the 1. 3 billion Mega Millions?
Yes, the Mega Millions ticket worth an estimated $1. 537 billion (before taxes) was sold in South Carolina in October, 2018. A trust identified as “The 216 Trust” claimed the prize. When the trust submitted its claim, South Carolina did not publicly reveal the identity of the person or group, who ultimately are the winners of the massive jackpot.
A week later, lawyers representing the trust came forward and released a statement on behalf of the winners. The statement said the winners wanted to remain anonymous and requested that their privacy be respected.
A financial adviser also revealed that the winners had chosen to receive their prize in one lump sum of $877,784,124. It is not known how many people are part of the 216 Trust, nor who the individuals are behind the trust.
Some reports stated that it included a group of friends, while others hinted that the winning ticket was purchased by a lottery pool of co-workers from a small company located in the South Carolina area.
How much did the Mega Millions winner take home after taxes?
The amount that the Mega Millions winner will take home after taxes depends on their tax bracket, the taxes in their state, and other factors specific to their individual situation. In general, the winner will be required to pay taxes in the state in which the winning ticket was purchased, as well as the federal government.
Depending on the state, the rate of taxation can be anywhere from 0% to 8. 95%. On top of this, federal taxes must be paid at any rate between 10% and 37%, depending on the winner’s individual tax bracket.
Unlike the regular lottery where winners will receive their winnings all at once, the Mega Millions jackpot is paid out in the form of an annuity over 29 years, with six payments made annually. When calculating total taxes owed, both the present value of the annuity payments and the lump sum amount at the time of winning must be accounted for.
Summed up, the total taxes owed on a Mega Millions jackpot will range between 35% and 54% of the amount won, depending on where the ticket was purchased as well as the winner’s individual tax bracket.
In the end, the amount the Mega Millions winner will take home after taxes is ultimately dependent upon their individual tax bracket and the state in which the winning ticket was purchased.
Which state has the lowest taxes on lottery winnings?
It is difficult to pinpoint which state has the lowest taxes on lottery winnings due to the constantly changing tax laws and regulations across the United States. However, states such as Pennsylvania, Delaware, Oregon, and South Dakota are known to have consistent lower lottery taxes.
Pennsylvania, for example, has one of the lowest tax rates on lottery winnings – a flat rate of 3. 07%. Delaware has no state taxes on lottery, but players must still pay federal taxes if the prize exceeds $5,000.
Oregon has a flat tax rate of 8%, while South Dakota has no state taxes on lottery winnings. However, players should note that the taxation on lottery winnings is subject to change, so before playing, they should check the current tax rates in the particular state they are in.
What should I do first if I win the lottery?
If you have won the lottery, the first thing you should do is celebrate! It’s important to take some time to enjoy the moment and appreciate the life-changing financial windfall you have just won. Once you are done celebrating, it’s time to take practical steps to secure your winnings and plan how you want to use the money.
First, sign the back of your ticket and keep it in a safe place to prevent it from being lost or stolen. This is important because you need to submit the ticket to the lottery officials to claim your prize.
Second, it is wise to seek advice from qualified financial advisors and legal experts who can help you properly manage and protect your lottery winnings. They can advise you on investments, saving strategies and other options as you plan for your future.
Third, make a will. Having a will in place is an essential way to make sure that your assets and possessions are taken care of in accordance with your wishes. A will also helps to avoid confusion and conflict in the case that family members or other stake holders and potential beneficiaries may arise.
Finally, consider the tax implications and the implications on any government benefits you may be receiving. It’s important to consult with an attorney and a certified public accountant to make sure you understand the legal and taxation implications of your win and to develop a plan that will be most beneficial to you and your family.
What’s the smartest thing to do if you win the lottery?
The smartest thing to do if you win the lottery is to take a deep breath and resist the temptation to make any rash decisions. The first and most important step is to sit down with a financial planner, who can help you plan how and when to collect your winnings.
Depending on the amount, you may want to set up an LLC or trust, as this will provide more protection for you and your family in the long term.
You should also consider what you want to do with the money. Before you make any big moves, consider putting some of the money into a savings account or other financial instruments. Putting money away into long-term investments can provide you with peace of mind and financial security in the future.
Additionally, you may want to think about donating a portion of your winnings to a charity or cause that you believe in.
Finally, make sure that you live responsibly and within your means. Even if you have a large sum of money, it can still be easy to spend more than you have. Be mindful of your spending and always make sure to save for the future.
How long does it take to get the money when you win the lottery?
It depends on the lottery in question. Generally, the money is distributed within a few days to a few weeks from the time the numbers are drawn. However, some lotteries may require more time than others, as they must take into account any verification processes.
Some lotteries may even require winners to go to a lottery office to claim their prizes. Additionally, some lotteries may distribute payout over a period of several years, such as with annuity-style payouts.
What kind of bank do lottery winners use?
Lottery winners can use any type of bank of their choosing. It is important for lottery winners to take the time to thoroughly research their options and to find the most suitable bank for their needs.
Generally speaking, a traditional bank or credit union can be a great choice for lottery winners because they often offer a variety of accounts that can provide convenience and security with the funds.
That being said, many lottery winners use online banking, which is convenient and often provides great incentives and rewards such as higher interest rates. Another option that many lottery winners use is an investment bank, which can offer even more options for saving and investing with professional advice.
Ultimately, it is up to each individual lottery winner to decide which type of bank works best for them.
How much tax is deducted from Mega Millions jackpot?
The amount of tax deducted from a Mega Millions jackpot depends on several factors. The federal government taxes all lottery winnings over $5,000. This federal tax rate for lottery winnings is 25%. However, states may also charge taxes on winnings.
For example, if a winner lives in New York, they would be subject to an additional 8. 82% state tax on the entire prize amount. The Mega Millions jackpot winner would also be subject to federal tax withholding of 24% as well as any applicable state taxes.
Depending on the state, the jackpot winner might also be subject to a local or county tax.
If a Mega Millions jackpot winner decides to take a lump sum payment, they will pay taxes on the entire lump sum at once, even if the payout is spread out over several payments or years. If the winner decides to take lifetime annuity payments, the Internal Revenue Service (IRS) will tax them on whatever portion of the annuity is carved out for them in any particular year.
In addition to taxes, the lottery winner will also have other expenses, such as lawyers’ fees and financial advisors to help manage the winnings.
Ultimately, the exact amount of taxes deducted from a Mega Millions jackpot will vary, and the winner should consult with a tax expert to accurately determine their tax liability.
How much would you get if you won $100 million dollars?
If you won $100 million dollars, you would get a lump sum payment of the total amount, minus applicable taxes. Depending on the tax laws of your state, you may be taxed on the full $100 million or just your personal income made from the winnings.
In most cases, state and federal taxes would combine to take approximately 25% of the winnings, resulting in a net payout of approximately $75 million.
Taking into consideration any additional investments or taxes that the individual may be responsible for, the potential uses for the winnings are extensive. Of course, the amount of money is still enough to live comfortably for years to come, but the possibilities are nearly endless.
The individual may choose to invest in business ventures, real estate, stocks, or other types of financial instruments. Additionally, they may choose to pay off debt, such as student loans or credit cards, or make philanthropic donations to charities.
Ultimately, the individual should seek the advice of experienced financial planners and accountants to make sure that the winnings are invested and managed correctly. That way, they can maximize their asset and have a steady financial future.
Is it better to take the lump sum or annuity lottery?
The answer to this question depends on the individual situation and preferences of the person considering taking the lump sum or annuity lottery. Generally, a lump sum is the better option if you have a financial planner or other professionals who can help you manage and invest the lump sum for better returns over the long term.
On the other hand, if you don’t have the necessary knowledge and experience to invest the lump sum, taking the annuity may be a better option as it provides a guaranteed stream of income over the course of many years.
There are benefits to both taking the lump sum and annuity lottery. A lump sum provides more flexibility and control as you can use the money in numerous ways and maximize the return on investments. Additionally, taking the lump sum will help you avoid the income taxes that you would incur if you chose the annuity option.
On the other hand, the annuity lottery will pay out a steady stream of income for a longer period of time and can be useful for budgeting. Furthermore, you are not responsible for paying taxes until each annuity payment is issued.
Ultimately, the choice of taking the lump sum or annuity lottery should be based on your financial goals, risk tolerance and current financial situation.
What is the current Mega Million jackpot?
As of January 3rd, 2021, the current Mega Millions jackpot is sitting at $365 million. The next drawing will take place on January 5th, 2021, giving lottery players the chance to win the growing jackpot.
Players who match all six winning numbers will take home the entire jackpot. Additionally, players who match any of the five white balls will win a smaller cash prize. On January 5th, the drawing will be used to determine the official winning numbers, which will be pulled from a set of 70 balls – five white numbered balls and one gold Mega Ball.
Good luck to all players!.
What state has won Mega Millions the most?
The state that has had the most Mega Millions winners is California. The Golden State has had 550 jackpot wins since the game began in 1996, accounting for over 25 percent of all jackpot wins in the game’s history.
In fact, California has had four of the top 10 largest individual jackpots in the game’s history and 20 of the top 100. After California, the second most successful state for Mega Millions is New York with 320 jackpot wins.
Combined, these two states account for nearly half of all the jackpot winners in the game. Other states that have won notable amounts of jackpots include Florida, Texas, Georgia, New Jersey, Ohio and Pennsylvania.
The game is played in 44 states, the District of Columbia and the U. S. Virgin Islands, so while California has had the highest number of wins, it is important to remember that it’s possible to win in any of the other jurisdictions involved.