Personal Finance

That’s just what’s withheld before you’re awarded that giant check. You’ll owe the rest of the bill come tax time. (See infographic below.)

Winners face a different tax scenario than last year. Under the new tax law’s brackets, a winner with that kind of nine-figure income in 2018 would end up in the top bracket at a rate of 37 percent. (In 2017, the top rate was a slightly steeper 39.6 percent.)

But state and local income taxes paid are now capped at $10,000 as an itemized deduction. The loss of that deduction whittles a few million more off your take-home. (The luckiest winners will still be in those states that participate in that multistate lottery but do not have an income tax, or specifically do not tax lottery prizes.)

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