The Mega Millions jackpot has soared above $1 billion for the fifth time in history. Here’s the expected tax bill if you win.
The Mega Millions jackpot has soared to more than $1 billion for the fifth time in the game’s history.
Currently, the 30-year annuitized payout is worth $1.05 billion, Mega Millions’ fourth-largest prize to date. Winners may also choose the popular lump-sum option for a $527.9 million payout.
However, both options are pretax estimates and the winner will pay a sizable chunk to the taxman before seeing a dollar of the proceeds.
Tuesday’s drawing is at 11:00pm ET.
Whether you choose the lump sum or annuitized 30-year payout, it’s important to seek expert guidance, said Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida.
«Call your estate planning attorney before you do anything,» he said.
Lucas recommends the winner hire a team of experts, including a financial advisor, tax professional, estate planning attorney, bank specialists and more, to navigate a range of financial decisions.
