Inasmuch as Friday night draw went without a winner, Mega Million jackpot has soared to approximately $1 billion this week, marking the second largest jackpot in game’s history in the United States.
This is the forth time in almost five years of Mega Million jackpot that the prize amount surged to $1 billion.
No matter how large or trivial the winning amount is, the Internal Revenue Service imposes a 24% Federal tax on all lottery winnings. Not to mention, a large amount of the winning is devoured by the IRS.
Besides Federal tax, winners are accountable to the state government too with a portion of their winning amount. Unlike Federal tax, which is the same for everyone, tax enforced by states varies from 3% – 10% approximately. New York charges the most among the states of the United States. Lottery winners are bound to put up 10.9% of the winning amount to the state in New York.
The winners are accountable to the state where they purchase the lottery too. If you buy a ticket outside your state and the ticket matches with the drawn numbers, you will be subjected to the state (where the ticket is purchased) tax deduction too. But if you already paid taxes to a state that you do not reside in, they may provide credit or discounts.
However, not all the states charge taxes from the winners. There are some states in the United States, where you do not need to pay taxes at all. These states include Texas, California, Washington, South Dakota, Florida, New Hampshire etc.
Not to mention, no matter how much the winning price is, the amount you can access is largely dependent on the states you reside in and purchase the ticket from.
- Published By Team Nation Press News