Американская лотерея мега миллион

Mega millions frequently asked questions (faq)

Why is the cash option different than the advertised jackpot?

The Mega Millions jackpot is an estimated 29-year annuity value, with a total 30 payments (the first payment happens right away, followed by 29 annual payments).  When players choose
the annuity option for their prize, the state lottery pays the prize out over 29 years (30 payments) by
buying U.S. Government Treasury Securities, which earn interest and mature annually over
the 29 years.  That annual return is the amount the winners receive each year for the
29 year period.  With the cash option, the state lottery will take the amount of
money that would have been invested and will pay it directly to the winner in one
payment.  Both payment options have federal and applicable state taxes deducted
from them, although with an annuity option you pay taxes gradually on each annual payout, not all at once like with the cash option.

Are lottery prizes taxable?

Lottery winnings of $600.01 and over are subject to Federal Withholding tax.  For
winnings of $600.01, up to and including $5,000, you will be issued a W-2G form
to report your winnings on your federal income tax form.  For winnings of
$5,000.01 and over, your state’s Department of Revenue removes the 24 percent federal
withholding before you receive your winnings check (or, if it is
an annuity, from each winnings check).  You then receive a W-2G form with each
check to submit with your 1040 form to show that the 24 percent federal
withholding already has been paid.  In addition to federal tax, your state will
make additional withholdings for taxes, and most states will deduct other money that
you may owe to the state, such as back taxes, child support, loan payments, etc. 
In addition, like the federal tax withholding, the state tax withholding at the time
of prize payout may not be the total state tax owed at the end of the year. 
You must consult your state division of taxation for more information about the total
state tax requirements for lottery winners.

The state tax withholdings are as follows:

Arizona  4.8% state withholding (Arizona residents), 6% state withholding (non-Arizona residents)
Arkansas  6.6% state withholding
California  No state tax on lottery prizes
Colorado  4.63% state withholding
Connecticut  6.99% state withholding
Delaware  6.6% state withholding
Florida  No state tax on lottery prizes
Georgia  5.75% state withholding
Idaho  6.925% state withholding
Illinois  4.95% state withholding
Indiana  3.23% state withholding
Iowa  5% state withholding
Kansas  5.7% state withholding
Kentucky  5% state withholding
Louisiana  6% state withholding
Maine  7.15% state withholding
Maryland  8.95% state withholding (Maryland residents), 8% state withholding (non-Maryland residents)
Massachusetts  5% state withholding
Michigan  4.25% state withholding
Minnesota  7.25% state withholding
Mississippi  5% state withholding
Missouri  4% state withholding
Montana  6.9% state withholding
Nebraska  5% state withholding
New Hampshire  No state tax on lottery prizes
New Jersey  8% state withholding
New Mexico  4.9% state withholding
New York  8.82% state withholding, plus: 3.876% (NYC residents), 1.323% (Yonkers residents)
North Carolina  5.25% state withholding
North Dakota  2.9% state withholding
Ohio  4.797% state withholding
Oklahoma  5% state withholding
Oregon  8% state withholding
Pennsylvania  3.07% state withholding
Rhode Island  5.99% state withholding
South Carolina  7% state withholding
South Dakota  No state tax on lottery prizes
Tennessee  No state tax on lottery prizes
Texas  No state tax on lottery prizes
U.S. Virgin Islands  † Unknown State Tax Rate
Vermont  6% state withholding
Virginia  4% state withholding
Washington  No state tax on lottery prizes
Washington, D.C.  8.95% state withholding
West Virginia  6.5% state withholding
Wisconsin  7.65% state withholding
Wyoming  No state tax on lottery prizes

† This state/jurisdiction has not responded to our requests for this information.

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