Mega Millions Jackpot Surpassed $1 Billion - But That's Before Taxes

The odds of winning the lottery are slim to say the least. But with 10 numbers at stake, why not try your luck?

After Tuesday night's draw for the Mega Millions jackpot failed to produce a winner, the prize jumped to $1.2 billion for the next draw on Friday, July 29.

The Mega Millions site was down for more than two hours during the Tuesday night draw, according to megamillions.com, as it experienced "unprecedented traffic", the highest in its history to date.

This is only the fourth time in history that a jackpot (for any US lottery) has reached over $1 billion and the third time in Mega Millions history. The biggest win in history came in January 2016, when the Powerball prize topped $1.6 billion, hitting winners in three states. As for the Mega Millions, the highest record is $1.537 billion, won in South Carolina in 2018.

Related: Man Wins Millions After Cashier Gets Lottery Ticket Wrong

Yet lottery money - although it seems life changing - is still taxable. For this draw, the mandatory withholding tax reduces the winnings by $144.6 million. Additionally, if the winners opt for the cash option, the redemption reduces the jackpot from $1.2 billion to $602.5 million.

Of course, it's still a fortune, but so is the tax bill.

Related: How to Virtually Guarantee You'll Win the Lottery

This famous funeral director on TikTok might bury 10 people a day, but he always finds time to write great songs

A call from the candidates: please reject us!

'Rules are suggestions': This fashion founder is using AI to eliminate the industry's huge sizing and waste problems

Being an introvert doesn't make you a bad leader. In fact, it may be your secret weapon.

What entrepreneurs can learn from Paul Newman

I built over 10 million followers on TikTok in 1 year.