LogFAQs > #910796117

rogerskg1979 posted...

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.

Til, thanks.

Sorry wolfy, I think we are talking about 2 different things. I am only talking about the 970m prize from megamillions which has a cash option of 548m. But even if you win in New York the worst state to win it in it would still be 297m so I am not sure how you are getting less than 200.

That said, I am not talking about the likelihood of winning. If you buy a ticket you should expect to lose, but 2-10 bucks (depending on how many draws it takes to win when it is this high)every months isn't going to break most people.
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