The Mega Millions jackpot increased to over $1.6 billion on August 9, 2023.
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State taxes can be high
“These winners don’t think about taxes until a third of their money goes directly to Uncle Sam and the state government,” said a Chicago-based company that represents several lottery winners. said attorney Andrew Stoltman.
These winners don’t think about taxes until a third of them go directly to Uncle Sam and the state government.
Eight states, including California, Florida, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming, do not impose income taxes on lottery winnings.
However, winning tickets must be redeemed in the state of purchase. This means that if you make an out-of-state purchase in a high-tax state, you could end up with a higher bill.
But depending on where you live, the pension payments could save you future state taxes, Stoltman said. The annuity includes the initial amount and his 29 subsequent annual payments.
Sign and secure your ticket
Lottery winners have a deadline to come forward and collect their money, but some prizes are no longer available.
“Sign, photograph and scan your ticket before securing it,” said Michael Witty, a partner at the law firm Smith Gambrell & Russell, who also offered advice to past lottery winners. Is going.
Mega Millions says it’s important to “protect yourself” by signing the back of your ticket. Otherwise, anyone in possession of a winning ticket may file a claim to recover the proceeds.
Alternatively, you may be able to protect your privacy by claiming your winnings through a trust or limited liability company. In any case, please consult a lawyer first.
Avoiding “legitimate catfights” on shared tickets
Problems with winning tickets can also arise when you pool money with friends or colleagues, Stoltman said.
“The most egregious legal catfights occur when multiple people buy tickets together,” he said, with one person claiming to have bought the winning ticket alone.
Stoltman said there should always be a “basic written agreement” in place that states who will buy the ticket, the shared ticket number and how the group will be divided if there is a winner.
Mega Millions isn’t the only way to win big. If there was no big winner in Saturday night’s drawing, the Powerball jackpot would have ballooned to an estimated $800 million. The odds of winning the grand prize in that game are approximately 1 in 292 million.
