lottery taxes?

Question

lottery winnings after cash option $30 million
state tax 3.9%
what would take home be in figures please

Answer 1

State taxes at 3.9% would be $1,170,000, Federal taxes would be based on cash option less state taxes, which would be $28,830,000 and tax on that would be right around 35%, which would be $10,090,500. Net after taxes would be approximately $18,739,500. Give or take.

Answer 2

If you are saying the $30 million is the cash option amount, then your federal tax would be a little under $10.5 million and your state tax, if your state collects tax on lottery winnings, would be around $1.17 million. So you'd end up with a little over $18.33 million - and a lot of friends that you didn't know you had. ;-}

If the $30 million was the annuity amount and you took the cash option instead, your take home would be more like $7-8 million, still a very nice piece of change.