What is Massachusetts income tax on $910 million? Plus, other Mega Millions jackpot answers
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You’re more likely to die in a plane crash or get hit by lightning than win Mega Millions.
But, with a jackpot approaching a billion dollars, that won’t stop thousands of hopeful Massachusetts residents from trying their hand at the drawing this Friday. Lottery hopefuls will wait with fingers crossed on Friday, July 28 at 11 p.m. for their chance to win $910 million.
It wouldn't be the first time someone from Massachusetts has struck it big. Historically, there have been three jackpot winners from Massachusetts, with one winner receiving a whopping $294 million in 2004. This Friday's jackpot will be more than three times that amount.
Here’s what to know about the Mega Millions lottery in Massachusetts.
How do I play the Mega Millions?
Anyone 18 and older can head to participating convenience stores, grocery stores, and gas stations across the state to pick up a lottery slip. Fill in the slip with selections for five numbers between 1-70, represented in the drawing as white balls, and a Mega Ball number between 1-25, represented in the drawing as a gold ball. Choose your own numbers or ask the lottery sales agent for a "Quic Pic" to have a computer randomly generate the numbers for you.
Each six-number selection costs $2. For an extra dollar, select "Megaplier" to multiply your-non jackpot prizes up to five times. Of the 15 Megaplier balls, five are marked "2x," three with "4x," and one with "5x."
Hand your completed slip to the sales agent, who will hand over your ticket. It is recommended to check the ticket for accuracy before signing the back.
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How can I win the Mega Millions?
To hit the $910 million jackpot, all six of your selections, the one Mega Ball and five numbers, must match those that are drawn — but you don’t have to hit all six to get your money's worth.
Not including the Megaplier option, players can earn $2 for a Mega Ball match, $4 for a Mega Ball and one number match, $10 for a Mega Ball and two number matches, $10 for three number matches, $200 for a Mega Ball and three number matches, $500 for four number matches, $10,000 for a Mega Ball and four number matches, and $1 million for five number matches.
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What are my chances of winning?
The chances of taking home Mega Millions’ top prize are about one in 302 million.
How many Massachusetts residents won in Tuesday's Mega Millions drawing?
According to masslottery.com, in Tuesday's drawing,
50,295 Massachusetts players had a Mega Ball match;
22,055 had a Mega Ball and one number match;
3,063 had a Mega Ball and two number matches;
3,594 had three number matches;
146 had a Mega Ball and three number matches;
43 had four number matches, and only
1 player had a Mega Ball and four number matches.
No one had five-number matches.
There were no jackpot winners in any state, bumping this Friday’s prize up from $820 million to $910 million.
If a player wins this jackpot, they'll have 60 days to select a payment option. A winner could take the total $910 million in 30 payments over 29 years or go for the one-time cash option of a lower amount — in this case around $464 million — which is what most winners choose.
What is the Massachusetts income tax on the $910 million jackpot?
According to Mass.gov, for winnings of $600 or more, 5% is withheld. For prizes $5,000 and more, an additional federal tax is withheld.
That would be a whopping $23 million or so on the one-time payout of $464 million.
Jackpot winners who instead choose the 29-year payout option must include the annual payout in their taxable income for every year they receive it.
But state income tax is just the beginning.
Regardless of which option the player takes, the IRS takes a minimum 24% federal withholding tax upfront on lottery winnings and collects the rest when the next tax return is filed up to about a 37% tax rate in 2023, according to USA Today. That's a big chunk out of either payment choice.
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Where to claim your lottery prize in Massachusetts
Winners have one year to claim their prizes, which must be done in Massachusetts if the winning ticket was purchased in-state. You do not need to claim prizes at the same location you received the ticket.
Prizes over $600 must be claimed at a lottery office located in Braintree, New Bedford, Springfield, Woburn, Worcester or Boston.
Jackpot winners must claim their prize at the Massachusetts Lottery Headquarters in Braintree.
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What percent of winners are from Massachusetts?
Massachusetts had 79,195 winners in Tuesday’s drawing, accounting for 3.14% of all Mega Millions winners nationally.
This article originally appeared on The Enterprise: Massachusetts Lottery: What to know about Mega Millions jackpot
