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Play Mega Millions Lottery Online. All the states offer the Megaplier option except for California. If you win a Mega Millions jackpot, you can choose to have it paid out across 29 years as an annuity or all at once.
The cash lump sum is the money available for the jackpot that is generated from the sale of Mega Millions tickets.
The annuity option accounts for this amount as well as the extra cash generated by the investment made in government bonds over 29 years.
Mega Millions draws take place on Tuesdays and Fridays at p. ET, p. When it comes to the Mega Millions, only 25 states have claimed big jackpot winners, with New York's 37 mega-millionaires leading the way.
California is second with 31 and Ohio recently joined New Jersey in a third-place tie with The initial state withholding taxes are based on published guidance from each state lottery and the final state tax rates are from state government publications.
If you can't claim your prize anonymously — it depends on the state — you may want to skip town for a while. Unwanted attention can come from both the public and family.
Additionally, if you want to share some of the money with family or friends, plan in advance for those gifts, Boneparth said.
That's when planning really comes into play. Either way, the money will be taxed when you receive it. Right now, federal income taxes are low from a historical standpoint — and it's impossible to know where they may be years from now.
This means that from a tax perspective, it could cost you more to take the annuity because tax rates are more likely to increase down the road than decrease, experts say.
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