Someone purchased the winning ticket in Illinois, and if they follow the example of most winners, they will choose to accept the lump sum rather than the annuity.
The second-largest jackpot in Mega Millions lottery history, at $1.28 billion, can be collected in full or gradually.
The 1.28 billion is only available if you take it gradually; if you want it all at once, you would only receive $747.2 million.
However, just like with other things, the IRS reduces even that lesser cash amount. In actuality, the IRS may withhold up to 37% of lottery wins.
Interestingly, just 24% of the money is withheld and transferred straight to the government.
$747,200,000 was the winning cash reward after 24 percent IRS withholding.
to $567,872,000 it decreases. But that shouldn't be all that the winner spends.
Since the federal income tax rate increases to 37%, it is reasonable to presume that the winner falls into the top 37% tax bracket.
It turns out that hundreds of millions of dollars went into the highest tax rate.