The next Mega Millions drawing is Friday, July 29 at 11 p.m. ET (10 p.m. CT) with a whopping $1.02 billion pot. If someone chooses the one-time cash option – the most popular option for lottery winners – they will receive $602.5 million. It’s just the third time in Mega Millions’ 20-year history that the jackpot has topped $1 billion. The odds of winning? About 1 in 302.5 million. Tickets are sold in 45 states for $2 each. Alabama is one of the states that does not participate in Mega Millions. READ MORE: Restaurant owner buys Mega Millions tickets for 50,000 employees, including some in Alabama Mega Millions now at $1.02 billion: No winner Tuesday night. when is the next draw? Raising Cane’s: Did Mega Millions Founder Win After Buying 50,000 Tickets? Here is the answer Taxes, taxes and more taxes CNBC broke down the taxes someone would owe if they won the top prize. The first decision would be whether to take the earnings as an annuity with 30 payments over 29 years – which adds to the tax bill over that time period – or opt for an immediate but reduced lump sum. Most choose the cash option, so the federal government imposes a mandatory 24% federal withholding tax, reducing your earnings by $144.6 million. You would owe more at tax time. The top federal marginal tax rate is 37%, which applies to income over $539,900 as a single taxpayer or $647,850 for married couples, and you’ll have to make up the difference when you file your federal taxes. That extra 13% would take in another $78.3 million, bringing the total federal taxes owed to $222.9 million. After federal taxes, you would be left with $379.6 million. State taxes would then be due. Depending on where you bought your ticket and where you live, these taxes could be as high as 10%. Not all states tax lottery winnings, but Alabama – which does not have its own lottery – does. Assuming the top 10%, the individual who chooses the lump sum would receive approximately $341.6 million. Just scratch it.
