Mega Millions Jackpot Soars to an Astounding $944 Million for Christmas Eve Draw; Determining the Post-Tax Amount for the Lucky Winner
Main Point
Mega Millions Jackpot Soars to an Astounding $944 Million for Christmas Eve Draw; Determining the Post-Tax Amount for the Lucky Winner
The Mega Millions jackpot has skyrocketed to an estimated $944 million for a drawing on Christmas Eve, securing its place as the seventh-largest prize in the lottery's history. Despite the odds being stacked against any prospective winner, at approximately 1 in 302 million, the lucky individual would only walk away with about a third of this sum after taxes.
Important Details
A fortunate ticket holder managing to match all five white balls and the sole "megaball" for the jackpot could choose between receiving payouts over 30 years or a one-time lump sum of $429.4 million.
This lump sum would be decreased to $326.3 million due to a mandatory 24% federal tax withholding, with further cuts reaching up to $270.5 million in the event of a federal marginal tax rate reaching as high as 37%, based on the winner's income and deductions.
Annual payouts would provide an average of $19.8 million with a 37% federal tax rate.
Several states impose taxes on lottery winnings, with tax rates ranging from 10.9% in New York ($46.8 million) to as low as 2.5% in Arizona ($10.7 million). However, states like California and Texas are devoid of such taxes.
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Points to Monitor
Mega Millions' next drawing is scheduled for Tuesday night. Powerball will hold its subsequent drawing on Saturday night, boasting a $88 million jackpot. This grand prize includes a $40.2 million lump sum option, which would be subject to a 24% mandatory tax withholding, or a $25.3 million prize with a federal marginal tax rate as high as 37%.
Surprising Statistic
The jackpot currently represents the seventh-largest prize in Mega Millions history, surpassed by six other jackpots that surpassed the $1 billion mark. Notably, a $1.1 billion jackpot was won in March, with two other record-breaking prizes being recorded last year, including the largest-ever jackpot of $1.6 billion. The Mega Millions jackpot has, to date, only been won once on Christmas Eve, although the $68 million prize in 2002, namely the lottery's inaugural year, ultimately went unclaimed, according to the lottery.
Noteworthy Number
Over 2 million non-jackpot-winning tickets were drawn on Friday night, including five tickets that matched all five white balls to secure a $1 million prize.
Background Information
Mega Millions announced changes to the lottery in October, promising improved jackpots, better odds, and new rewards. As part of these modifications, one of the "megaballs" was removed from the draw, hence enhancing odds from one-in-25 to one-in-24. The lottery will also commence with a larger jackpot, introduce a "randomized" multiplier for non-jackpot prizes, and eliminate break-even prizes, ensuring that any player matches at least $10 in the event of a "megaball."
Participants interested in the upcoming Mega Millions draw on Christmas Eve have a chance to win the seventh-largest lottery prize in its history, worth an estimated $944 million. With Powerball offering a $88 million jackpot in its Saturday night drawing, fans of these mega lotteries, including Mega Millions and Powerball, have multiple opportunities to test their luck.