Winning ticket for Mega Millions $1.128 billion jackpot sold in New Jersey — here’s how much the winner will owe in taxes

Get ready for a jaw-dropping story!

There’s an incredibly lucky winner of the $1.128 billion Mega Millions jackpot, with a ticket sold in New Jersey.

But here’s the catch: Uncle Sam and the New Jersey taxman are in for a hefty chunk of that prize money.

The winner has two payout options: an annuity worth the full $1.128 billion over time or a lump sum of $536.6 million cash.

Either way, taxes will take a massive bite.

Before they even touch a penny, the winner will face a mandatory 24% federal withholding, reducing the lump sum by about $129 million.

But that’s not the end of their federal tax troubles.

They could still owe another 13% in taxes, or roughly $70 million, depending on other income and tax deductions.

New Jersey is not letting this opportunity slip by.

It automatically withholds 8% for payouts over $500,000, which means the winner will lose around $43 million up front.

And that’s not all; New Jersey has a top tax bracket of 10.75%, so the winner will likely owe even more when they file their state taxes.

Tax experts say that lottery winners often don’t give enough thought to the tax implications of their winnings.

But in this case, the tax bill will reach millions of dollars, leaving the winner with significantly less than the advertised jackpot amount.

So, while the Mega Millions jackpot may be life-changing, it’s essential to remember that a portion of that fortune will be claimed by the taxman, both at the federal and state levels.