Most winners still choose the lump sum option because the winnings can be invested right away.
For a $1.4 billion jackpot, you'd take home $386.82 million after federal taxes.
In contrast, winners who choose the lump sum take home slightly less than half the listed jackpot amount. Most states charge additional taxes on lottery winnings - eight states don't. After federal taxes, a $1.4 billion jackpot would give you roughly $29.44 million per year, according to. When you choose the 30-year annuity payout, you win the full listed jackpot amount.
