You're watching...
FBN's Adam Shapiro breaks down the taxes that would be deducted in the Mega Millions Game jackpot for tomorrow's $540 million drawing.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Thanks Jim thank you very much.
Well here's a question for all of you home having you bought your Mega Millions tickets is so you have over a one and 175.
Million chance of winning.
A lot of Americans have lottery fever and Adam Cole -- Shapiro today's break -- down -- -- much cash in walk away with if you went at -- of the jackpot is now at its.
540.
Million dollars -- again 540.
Million.
Dollars.
It almost sounds evil and -- it's enough to violent bedroom apartment New York City not seriously Cheryl.
We crunched numbers -- it is just easily 500 million which is already on record breaker and take a look at it but the pay out roughly would be even at 540 million.
After 25%.
Skimmed off the top don't get both the whole jackpot number there's an annuity.
And that's really what you're getting paid if you take the cash lump sum but they got to pay 25%.
In federal tax on that so roughly 269.
Million now.
It depends -- you buy your tickets some states don't have a lottery tax so if you happen to live in one of the states where it's best to buy a lottery ticket for instance.
California you'd need every penny with a -- to get to California these days -- five bucks a gallon.
Delaware New Hampshire South Dakota Tennessee Texas the US Virgin Islands -- pocket every penny the money -- you pay 35% federal tax but.
If you happen to live in places like Arkansas Merrill Lynch.
New York New Jersey Missouri.
You gotta pay a bit of a hefty tax and -- gave me an idea of the difference.
In New Jersey -- ten point 8% -- the jackpot with that -- 500 million.
-- -- with roughly 230.
Million as opposed the 269.
Million.
If you had lived in say California of course -- -- in California you wouldn't enjoy all of the -- whether we get in New Jersey.
-- -- -- That would be enough to buy L bathroom in New York City potentially -- at all right let me ask you -- it F biggest so interesting how you know this is basically legalized gambling as we -- know but this dates.
Are the ones that are the big winners for any Lotto game we have discovered.
And this has been a controversy that rears its -- a lot a lot of states supplement their budgets with lottery revenue -- states actually.
Replace what would have been other revenues for the lottery revenues for education and other issues but it is -- -- directly or directly with today's call it what it is which is attacks.
And there's been a study actually was the national gambling impact study commission.
Found that people who have lower incomes actually.
Play the lottery on it's about three times more than people with higher income so it's attacks on the people who essentially -- least afford to do it.
An interesting take -- and company keep in mind as we watch -- -- Lotto fever alright Adam Shapiro outside in the streets of New York City -- thank you and what went all of you do at home.
What the five -- -- forty million if you won the lottery that was our question to you responses.
Many -- helping out you're down -- -- neighbor of putting money back into the country we like to see that Dave talked -- About two my favorite things he says he would become a major shareholder in apple and open up an animal rescue and central PA.
Electing animal -- -- they need the money -- -- -- the same thing that I'm doing today with less stress and fewer headaches Ken.
Says an all likely have learned enough some overly ambitious IRS agent type -- name know.
