Mega Hundreds of thousands jackpot at $243 million after two months with no winner

For those who hit the Mega Hundreds of thousands jackpot in Friday evening’s drawing, do not forget that good ol’ Uncle Sam can be hovering with palm out.

After greater than two months of twice-weekly drawings with nobody matching all six numbers — your probability of doing so is 1 in about 302 million — the highest prize has climbed to $243 million. After all, the marketed quantity is not what you’d find yourself with.

Whether or not you’re taking the prize as an annuity unfold out over three many years or as a right away, diminished lump sum, 24% is withheld for federal taxes. Nonetheless, the highest marginal tax fee of 37% would imply owing much more.

“There may be nonetheless a large tax invoice coming, for certain,” mentioned April Walker, lead supervisor for tax observe and ethics on the American Institute of CPAs.

“Winners need to plan for any further quantity that can be due subsequent April to the IRS and the state,” she mentioned.

For Friday evening’s Mega Hundreds of thousands drawing, the money choice — which most winners go along with — is $167.four million. The 24% federal tax withholding would scale back that quantity by $40.2 million.

Assuming you had no discount to your taxable earnings — similar to giant charitable contributions — one other 13%, or $21.eight million, can be as a result of IRS at tax time.

That might be $62 million in all going to Uncle Sam, leaving you with a cool $105.four million.

Nonetheless, state or native taxes can be on high of that….