Mega Millions Ticket Sold In Illinois Wins $560 Million Jackpot—Here’s How Much The Winner Will Take Home After Taxes (2024)

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Mega Millions Ticket Sold In Illinois Wins $560 Million Jackpot—Here’s How Much The Winner Will Take Home After Taxes (2024)

FAQs

Mega Millions Ticket Sold In Illinois Wins $560 Million Jackpot—Here’s How Much The Winner Will Take Home After Taxes? ›

The winner will now choose between receiving the $560 million jackpot spread across 30 annual payments, or a lump sum cash prize of $264 million—usually the preferred choice. The cash prize will drop to around $201 million after a mandatory federal tax withholding of 24% is deducted.

What is the tax rate on lottery winnings in Illinois? ›

Winners paid in annual installments automatically have taxes withheld from each annual payment. The current withholding rate for Illinois income tax is 4.95 percent. The Lottery is currently required to withhold federal taxes of 24 percent for U.S. citizens and resident aliens.

How long does it take to get your money from the Illinois lottery? ›

You can expect to receive your check by mail in 3-4 weeks. Every effort will be made to process your claim as quickly as possible. This estimated timeframe is dependent upon several factors, including completion of the claim form, submission of all required documents, and the quality of the uploaded ticket images.

How quickly do you get your money when you win the lottery? ›

If you elected the cash option or if your prize is only offered in a single payment, your check should arrive approximately six to eight weeks from your claim date. If your prize is to be paid in installments, your first payment should be available within six to eight weeks from your claim date.

How soon do you get your Mega Millions winnings? ›

When you win a Powerball or Mega Millions jackpot, there is a 15-day waiting period between the draw date and when the jackpot will be paid out, as money from ticket sales needs to be collected in order to pay out the jackpot.

Do lottery winnings affect social security? ›

Do lottery winnings count as earned income for Social Security purposes? Lottery winnings are not considered earned income, no matter how much work it was purchasing your tickets. Therefore, they do not affect your Social Security benefits.

How much will I pay in taxes if I win a million dollars? ›

How much do I pay in taxes if I win 1,000,000? If your gross prize for lump sum payout is $1,000,000, you need to pay $334,072 in total tax ($240,000 federal withholding, plus the remaining $94,072 for single filing status in 2021).

What is the first thing you should do if you win the lottery? ›

Before you do so, there are things you should do:
  1. Safeguard the ticket.
  2. Be choosy about who you tell about your win.
  3. Engage a Lawyer and Financial Advisor.
  4. Decide on taking the lump-sum or annuity option.
  5. Plan on income taxes in two parts.
  6. Engage in tax-focused estate planning.
Jan 31, 2024

How to give money to family after winning the lottery? ›

Consult with a Tax Professional: Before you start doling out cash, get in touch with someone who can guide you through the tax implications. Set Up Trusts: For larger gifts, consider setting up trusts. It's like giving your money a blueprint for how you want it to be used and can provide some tax benefits.

How fast do lottery winners lose their money? ›

Nearly one-third of lottery winners eventually go bankrupt within three to five years, which is more likely than the average American, according to the Certified Financial Planner Board of Standards.

How do you get paid if you win Mega Millions? ›

If you win a Mega Millions® jackpot, you will choose how to be paid: Cash Option or Annual Payout. Prize claim parameters vary from state to state. Contact your Mega Millions lottery for detailed information. Annuity option: The Mega Millions annuity is paid out as one immediate payment followed by 29 annual payments.

How long do you have to cash in a mega million? ›

Timeline for Claiming Mega Millions Winnings
StateLength of time to claim your prize after the drawing
Arkansas*180 days
California180 days
Colorado*180 days
Connecticut180 days
43 more rows
Apr 9, 2024

How soon do they know if someone won Mega Millions? ›

Winning numbers are posted shortly after each drawing. Information on the number of winners is posted on Wednesday and Saturday mornings after Mega Millions lottery security has verified winning ticket sales.

How much federal taxes are taken out of lottery winnings? ›

Lottery winnings, considered taxable income, are subject to both federal and state income taxes. The Internal Revenue Service (IRS) imposes a federal tax rate of 24%, and California's state income tax, with rates ranging from 1% to 13.3%, adds an additional layer of taxation.

What is the federal tax rate on gambling winnings? ›

If your winnings are reported on a Form W-2G, federal taxes are withheld at a flat rate of 24%. If you didn't give the payer your tax ID number, the withholding rate is also 24%.

What are the federal tax brackets for 2024? ›

Head of household
Tax rateTaxable income bracketTax owed
10%$0 to $11,600.10% of taxable income.
12%$11,601 to $47,150.$1,160 plus 12% of the amount over $11,600.
22%$47,151 to $100,525.$5,426 plus 22% of the amount over $47,150.
24%$100,526 to $191,950.$17,168.50 plus 24% of the amount over $100,525.
3 more rows
May 30, 2024

How much do you win on Illinois Lotto? ›

All you need to know about Lotto

Lotto is an Illinois $2 jackpot game with three chances to become a millionaire. Each play enters your numbers into three separate drawings: the Jackpot drawing with prizes from $2 up to the jackpot, plus Lotto Million 1 and Lotto Million 2, each with a prize of $1,000,000.

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