Any HGTV superfan can tell you about the hit reality series “My Lottery Dream Home.”.” lottery The winners embark on an extravagant house hunt to find their next luxury home.
Could that be you?
Maybe. Because this week’s Mega Millions jackpot is rising again. An estimated $800 million is available to ticket holders in the drawing on September 10th.
Subscribe Kiplinger’s personal finances
Be a smarter and more informed investor.
Save up to 74%
Sign up for Kiplinger’s free e-newsletter
Build profit and wealth with the best expert advice on investing, taxes, retirement, personal finance and more – delivered straight to your email inbox.
Profit and thrive with the best expert advice – straight to your email inbox.
How much is the payout, when is it made and how much tax do you pay on your mega jackpot? Read on.
Mega Millions Drawing Days
Mega Millions Drawings occur on Tuesday and Friday at 11:00 p.m. EDT, so the next big drawing is Tuesday, September 10th.
You can follow the draw in one of the following ways:
How much does a Mega Millions ticket cost?
A Mega Millions ticket costs $2.00 and tickets are available in most U.S. states, as well as the District of Columbia, Puerto Rico and the U.S. Virgin Islands.
Indicates that not Alabama, Alaska, Hawaii, Nevada and Utah participate in Mega Millions.
Can you buy Mega Millions online?
You can buy Mega Millions online, but only if you live in a participating state.
States that offer Mega Millions online include:
- Connecticut, Georgia, Illinois, Kentucky
- Michigan, New Hampshire, North Carolina
- North Dakota, Pennsylvania, Virginia
The District of Columbia is also participating in the online game.
However, to play Mega Millions in any of the above states or territories, you must first register with the lotteries in those jurisdictions.
How late can you buy a Mega Millions ticket?
In most states, Mega Millions ticket sales stop about an hour before the drawing. However, in some states, sales stop as early as four hours before the drawing.
Please contact your local authority for the exact time.
Mega Millions Pension
You have two options to claim your winnings. You can either accept a lump sum payment or annual annuity installments.
But remember: Lottery winners must pay federal taxes (more about this below).
While the lump sum payment is immediate, the annuity option allows you to receive a payout every year over a period of time. According to the lottery’s website, the Mega Millions annuity consists of “an immediate payment followed by 29 annual payments. Each payment is 5% higher than the previous one.”
As an example, lottery officials give the following: For a jackpot of $100 million, the first payout would be about $1.5 million, with annual payments increasing to about $6.2 million.
How much does Mega Millions cost?
If no one wins for a while, the Mega Millions prize is paid out. The estimated jackpot for the next drawing is $800 million. (This equates to a cash payout of approximately $401 million).
Earlier this year, the Mega Millions paid out $1.13 billion to someone in New Jerseyand then a winner in Illinois took home a jackpot of $552 million.
But as mentioned earlier, it is important to note that in addition to federal taxes, you may also have to pay some local state taxes. (Although some States will not tax your lottery winnings).
Of course, some people can’t resist the temptation. Who wouldn’t want to be a millionaire? Despite the odds of winning – around 1 in 292.2 million according to lottery authorities – someone has to make it.
Could it be you?
