How much money will the lottery winner take home

ST. JOSEPH COUNTY, Ind. – Two major jackpots are up for grabs. Right now, both Mega Millions and Powerball have grand prizes nearing half-a-billion dollars, each. But, how much of that money will the winner actually take home?

Well, the odds aren’t exactly in your favor. But, if someone here in Michiana did hit one of those jackpots, the money is considered taxable income. That means, the federal government will withhold 24 percent automatically. But there are other taxes due like state and local taxes that the winner should take into account. 

“Of the 447 million, the true after-tax number is closer to 260 million,” Mike Bernard, a financial planner with Korhorn Financial group said.

The jackpot for Mega Million is set to $490 million and for Powerball, that number is set to $470 million Numbers for the Mega Millions are pulled on Friday, Jan. 9 at 11 p.m., and the Powerball is drawn Saturday, Jan. 10.

Bernard said the first thing the winner should do is calculate what the actual tax is and set that money aside. For instance, if the amount is set at $407 million, take away 24 percent. You’re then left with $330 million. But, there are more taxes due because that money lands on your income. You could figure out the actual amount with a financial planner. The next step, Bernard mentions is financial freedom.

“I would free yourself from debt, I would free yourself by building up a savings account, and then I would make a list of all of the various things you’d like to do with this money,” Bernard said.

Bernard also said, wait a couple of months before making any big financial decisions.