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If you had opted for the lump sum prize in our $ten million lottery, the prize would be about $five million. Just after federal and state taxes, you'd be left with about $2.5 million. Most U.S. lotteries take out 24 percent from the winnings to pay federal taxes. But, if your winnings have been in the millions of dollars, you would be paying closer to 37 % in federal taxes when tax time comes. Add state and regional taxes, and you might end up with only half of your winnings when you are carried out paying taxes.
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