Any superfan of HGTV can tell you about the hit reality series, "My Lottery Dream Home." Lottery winners go on extravagant house-hunting journeys to find their next luxury abode.
Could that be you?
Maybe. Since this week's Mega Millions jackpot is rising again. With an estimated $800 million up for grabs for the September 10 drawing, ticketholders are in for an exciting draw.
How much will the payout be, when will it take place and how much tax do you pay on your Mega jackpot? Read on.
Mega Millions drawing days
Mega Millions draws on Tuesday and Friday at 11:00 pm EDT. So, the next big drawing is Tuesday, September 10.
You can watch the drawing in one of the following ways:
- Go to the Mega Millions website
- Watch on YouTube
- View on broadcast television
How much does a Mega Millions ticket cost?
One Mega Millions ticket costs $2.00. Tickets are available in most U.S. states and the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
States that don’t participate in Mega Millions are Alabama, Alaska, Hawaii, Nevada, and Utah.
Can you buy Mega Millions online?
You can buy Mega Millions online but only if you live in a participating state.
States that offer Mega Millions online include:
- Connecticut, Georgia, Illinois, Kentucky
- Michigan, New Hampshire, North Carolina
- North Dakota, Pennsylvania, Virginia
The District of Columbia also participates in online play.
However, to play Mega Millions in any of the above states or territories, you must first register with the lotteries in those jurisdictions.
How late can you buy a Mega Millions ticket?
Most states stop selling Mega Millions tickets about an hour before the drawing. However, some stop as early as four hours before the event.
Be sure to check your local jurisdiction for a precise time.
Mega Millions annuity
You have two options to claim your winnings. You can either accept a lump sum payment or yearly annuity installments.
But remember: lottery winners must pay federal taxes (a little more on that below).
While the lump sum is more immediate, the annuity option will allow you to receive a payout each year over some time. According to the lottery's website, the Mega Millions annuity is "one immediate payment followed by 29 annual payments. Each payment is 5% bigger than the previous one."
So, the example lottery officials provide is if a jackpot is $100 million, the initial payment would be around 1.5 million, with annual payments growing to around $6.2 million.
How much is Mega Millions?
If no one wins for a while the Mega Millions prize racks up. The estimated Jackpot for the next drawing is $800 million. (That's an approximate $401 million cash payout).
Earlier this year, the Mega Millions paid out $1.13 billion to someone in New Jersey, and then a winner took home $552 million in jackpot in Illinois.
But as mentioned, it’s important to note that, in addition to federal taxes, you may need to pay some local state taxes as well. (Though some states won’t tax your lottery winnings).
Of course, some can’t ignore the allure. Who wouldn’t want to be a millionaire? Despite the odds — about 292.2 million to one according to lottery officials — someone has to be that one.
Could it be you?
