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$1.337 Million Finally Takes Over the Mega Millions Grand Prix in Illinois After purchasing it from a Speedway service station in Des Plaines.
However, not all of this money will end up in the winner’s pocket, a large part can go to pay taxes, it all depends on how the winner wants to deliver the prize.
Paying taxes depends on whether the Mega Millions winner chooses a cash payment of $780.5 million or annual payments totaling $1,337 million over 29 years.
Illinois currently withholds 24% federal taxes and 4.95% state taxes on lottery prizes..
If the winner decides to accept a single payment of $780.5 million, approximately $187.3 million in federal taxes will be withheld, plus $38.6 million in state taxes.
This means it The winner will have to pay $225.9 million in taxes and will receive a net payment of $554.6 million.
If the winner receives the full $1.337 million in annual dues and the tax rates do not change for the next 29 years, approximately $320.9 million will be withheld in federal taxes and approximately $66.2 million in state taxes. This means that he will receive a net payment of $949.9 million over 29 years.
Although the cash option is most popular with winners, the annual payments are 5% more than the previous one.
“This helps protect the lifestyle and purchasing power of the winners in times of inflation,” the Mega Millions lottery states on their website.
This Mega Millions jackpot was one of the biggest ever after a South Carolina winner took the $1.537 million jackpot in 2018.
“Congratulations to the Illinois Lottery for selling your $1.337 million Mega Millions jackpot winning ticket. We are thrilled to see one of the biggest jackpots in Mega Millions history,” Ohio Lottery Director Pat McDonald said in a statement.
“We can’t wait to see who won and we hope to congratulate the winner soon! Even better, this exciting Grand Prix race had a huge positive impact on the good causes revenue that the lottery collected for members.”
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