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Why the Mega Millions Jackpot Isn't as Big as It Seems

USAThursday, December 26, 2024

Imagine winning the Mega Millions jackpot of $1. 15 billion. Sounds amazing, right? But let's talk about what you'd really take home. The federal government takes a chunk for taxes, and depending on where you live, the state might too. Only eight states don't tax lottery winnings: California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. If you're lucky enough to live in one of these places, you'd get more money.

But even then, it's not as much as it seems. The cash payout is much less than the annuity, but winners usually choose the lump sum to get the money now. Also, buying a ticket in another state can be tricky. That state might tax your winnings, and your home state might make you report it. So, before you dream too big, think about where you're buying your ticket and what you'd really take home.

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