LogFAQs > #910791506

slacker03150 posted...

if I won and took the cash payout of 548m it would get taxed as income by both federal and state.

It would actually be taxed as prize money, not income. There's a bit of a difference there. Prize money and bonuses are automatically taxed at the highest tax bracket regardless of whether your actual income is in a lower bracket.

I get paid a quarterly bonus at my job. That bonus is taxed much more heavily than my regular income. My net bonus ends up being barely more than half my gross bonus.