MACS wrote:447.8 if you take the annuity. Estimated 300 million if you take the lump sum, which almost everyone does.
Now, uncle sammy takes his cut of 35.14% so that 300 mill is now 194,580,000. Ooops... FICA needs their cut of that 300 million, so now it's 187,350,000. Dammit... TAXifornia wants their cut, too... at 13%, leaving you with $148,350,000.
Think about that. You won a prize, and the government gets almost 300 million of it before you ever see it. Effectively 2/3 of your winnings goes to the government. This applies to income... and you wonder why rich people move their businesses overseas.
FICA is calculated at 6.2% on the first $110,100 of
taxable wages. Since lottery winnings aren't taxable wages there is no FICA, FUTA or Medicare taxes due.
It would be advisable to see a tax attorney before one claim's the prize.