Would-be millionaires now comprise two chances at lottery jackpots of more than $400 million.
The Powerball jackpot is currently $460 million, and the Mega Millions stick up for a confronts at $418 million. Both games had their most recent jackpot pick ups in late October.
The next Powerball drawing is slated for Wednesday at 10:59 p.m. ET, and the next Mega Millions sketch is scheduled for 11 p.m. ET on Friday.
This is the first time U.S. lottery competitors have had two opportunities to try for jackpots exceeding $400 million, and the second schedule both have simultaneously topped $300 million.
The jackpots are also clobbering record-setting amounts: At $418 million, the Mega Millions would be the strategy’s fourth largest, while the $460 million Powerball would be that event’s seventh largest. The Powerball would also be the 10th largest jackpot in U.S. drawing history.
The first time both games simultaneously had jackpots uppermost $300 million was in early August. The Mega Millions was the first to pay out, with Patricia Busking of Illinois attractive home $393 million in mid-August.
The Powerball climbed to $758.7 million earlier Mavis Wanczyk of Massachusetts won in late August. That jackpot was the other largest in the game’s history and the second biggest in U.S. lottery history. It was also the largest superlative ever awarded to a single ticket.
Even if you win, you won’t walk away with the obsessed amount. Lottery site USAMega.com estimates the federal tax withholding on the $216 million Mega Millions join sum would be $65.25 million, and state taxes could knock out up to another $23 million (with New York the evil offender). For the Powerball, those tax tallies for the $291 million cash trophy would be roughly $72.75 million and up to $25.7 million, respectively.
That’s equitable what’s withheld before you’re awarded that giant check. You’ll owe the indolence of the bill come tax time. (See infographic below.)
Winners face a divers tax scenario than last year. Under the new tax law’s brackets, a winner with that manner of nine-figure income in 2018 would end up in the top bracket at a rate of 37 percent. (In 2017, the top grade was a slightly steeper 39.6 percent.)
But state and local income loads paid are now capped at $10,000 as an itemized deduction. The loss of that finding whittles a few million more off your take-home. (The luckiest winners wishes still be in those states that participate in that multistate pool but do not have an income tax, or specifically do not tax lottery prizes.)
Of course, there are myriad other details of an individual’s situation that can sway the final tax bill.
“The rule of thumb is that you ambulate away with about a third of [the jackpot],” Susan Bradley, a confirmed financial planner and founder of the Sudden Money Institute in Palm Lido Gardens, Florida, told CNBC in late 2017.
Winners may also further from the tax law’s changes to estate taxes. The legislation doubles the estate tax freedom from $5.49 million per individual to almost $11 million.
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