If an Idaho resident wins the $1.1 billion Mega Millions jackpot, how much do they get?
Before you make plans on how you’d spend the $1.1 billion Mega Millions jackpot, keep in mind that’s not the exact amount the winner gets.
Under federal, state and local tax laws and other lottery rules, your fortune will be knocked down a bit. Mega Millions is a multi-state lottery game that can be played in 45 states, including Idaho. It can also be played in the District of Columbia and the U.S. Virgin Islands. A Mega Millions interactive map shows each state where you can play.
In the last three Mega Millions drawings since July 19, Idaho residents have won at least a $2 payout, which is the lowest amount someone can win, in either the Mega Millions or Megaplier on 46,673 occasions. The largest single prize winners in the state so far have not exceeded $10,000 on two individual tickets.
Only one Idahoan has ever won the Mega Millions. Holly Lahti, a resident of Rathdrum, split a $380 million jackpot with a couple from Washington in January 2011.
Winners have 180 days from the day of the draw in Idaho to claim their winnings, as well as a further 60 days to decide between claiming their winnings in cash or annuity.
Here are what a winnings breakdown would look like in Idaho:
If you get a lump-sum payout
You get two options when you win the lottery: Get a lump sum cash payout of your winnings, or get your jackpot paid to you annually over 25 years.
If you choose to get a lump sum payout for the $1.1 billion, expect $684.2 million in cash, according to Idaho Lottery. State Farm states that lump sums are typically 60% of the total value of the winnings.
Lisa Greene-Lewis, a certified public accountant and tax expert with TurboTax, said that anytime you have a gambling winning — this includes scoring the lottery — and it’s more than $5,000, you’ll get a federal tax of 24%.
There are also additional federal taxes — totaling 37% of your earnings — since the payout puts you at a higher tax bracket. This means you’ll pay $155.5 million for the 24% right off the bat and $84.2 million when filings are due, according to the website USA Mega. This makes your cash payout $408,403,045.
Depending on the state you’re in, you may get more taxes on top of that. In Idaho, there is also a 6% state tax withholding taken out of the winnings.
If you want annuity
A similar taxing process follows if you choose to get annual payments for your winnings.
For the $1.1 billion jackpot, which will have another drawing on Friday, July 29 at 9 p.m. local time, you’d get 25 average annual payments of about $40 million that would increase by 5% every year in Idaho.
But after federal taxes — amounting to around $14.8 million — that net total per year would be around $25 million.
It’s important to note that these numbers are estimated averages for annuity payments. USA Mega states that your yearly earnings may vary depending on your choice to invest and your filing status.
This story was originally published July 29, 2022 at 1:04 PM with the headline "If an Idaho resident wins the $1.1 billion Mega Millions jackpot, how much do they get?."
