The Mega Millions jackpot has grown to $910 million. Here’s what the winner can expect to pay in taxes.
The Mega Millions jackpot has grown to an estimated $910 million, with the next high-stakes drawing on Friday at 11:00 p.m. ET.
The big prize has only exceeded $1 billion four times, most recently reaching the milestone in January, according to Mega Millions.
However, the windfall will be significantly smaller after the taxman takes its share of the winnings.
If you’re lucky enough to score the winning six numbers, there are two options for the payout: a lump sum of $464.2 million or 30 years of annuitized payments worth $910 million. Both choices are pretax estimates.
However, the lump sum may be better because you can maximize the prize by investing the proceeds sooner, according to certified financial planner and enrolled agent John Loyd, owner at The Wealth Planner in Fort Worth, Texas.
Either way, you’ll need to “have a plan and realize you can run out of money,” he said.
