The Mega Million Jackpot, which was previously speculated to be a $656 million, is now set at a record high $868 million. No one won the Saturday Powerball, and no one won the Tuesday Mega Millions Jackpot either. This accumulated to a total of $868 million for the next draw. So, you just have to keep your fingers crossed for the Friday drawing.

The amount surely tempts anyone to go and buy a ticket. But there are some factors which need to be considered before going for it.

An estimate from US Mega clearly stated that if you actually win, you will take home an amount which is pretty pretty less from the full prize.

Source- NBC15

You can either go for a lump sum payment or for an annuity.
A lump sum payment will get you a $513 million in cash. But then again, a 24% federal tax cut will cut your winning further down to $390.18 million.

But that’s not the end of your cuts. If you’re from California or Texas, you’re lucky enough to have any additional state tax. But in New York, the state too has levied a state tax rate of 8.82% on lottery prizes. And so, your net payout will be $344.98 million.

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The payout will be better if you go with the annuity plan. But you have to have the sheer patience for it. The annuity payment will be given over a time period of 30 years. Cutting out the federal taxes, you will get $22.8 million per year. But if you come under the states which levy the state taxes too, you net payment per year will come out to be $20.1 million, which totals upto $605.25 million.

The Mega Millions draw is starting soon at 11pm ET. If there are still no winners, the prize will boom.

Source- Business Insider