NEW YORK - The Mega Millions jackpot is an estimated $1.1 Billion for Friday night's drawing but the winner will get much less than that.
Most people will take the cash option. That will automatically cut the payout to $648.2 Million.
Then the tax man is going to come knocking on the door.
If you are in New York, here's the tax bite:
The Federal withholding is 24% (30% if you are not a citizen)
The New York withholding is 10%
If you live in New York City there is an additional 3.876% withholding.
If you live in Yonkers the local withholding is 1.82575%.
The Gaming Commission is required by law to withhold federal and New York State income taxes from taxable prizes over $5,000, regardless of the winner's place of residence.
By law, the Gaming Commission is also required to withhold overdue taxes owed to New York State, past-due support, and prior public assistance from any New York Lottery prize of $600 or more.