HOT LOTTO JACKPOT FOR TENNESSEE WINNER IS $5.5 MILLION!
NASHVILLE – The HOT LOTTO jackpot won in Knoxville Wednesday night will actually be a higher final payout than the estimated $4.9 million — $5,526,316 to be exact. Unique to other prizes, federal and state withholding taxes on a HOT LOTTO jackpot are paid by the lottery. Since the required state tax withholdings vary by state for the jackpot of this multi-state game, the final cash payout to the winner will also vary based on the state where the prize was won. And in Tennessee, because there is no state income tax, the winner will receive more.
The Tennessee Lottery also announced the Knoxville retailer who sold the lucky ticket: Thums Up Market, 2561 East Magnolia Ave. That retailer will receive a $5,000 selling bonus in addition to the excitement that comes with this news.
The HOT LOTTO jackpot comes on the heels of the Lottery’s record-breaking kick-off to its new fiscal year. July sales of $137 million were 14.8 percent higher than the same period of the prior year and the highest for any July since inception. This is the second HOT LOTTO jackpot prize won in Tennessee since the game launched here May 12, 2013. Two friends from Dyersburg won a $2.2 million jackpot October 13, 2013.
HOT LOTTO is a multi-jurisdictional drawing-style game featuring all cash (not annuitized) jackpots starting at $1 million. Tickets cost $1 each, with a “Sizzler” option that triples all non-jackpot prizes and costs an extra $1. Drawings are held every Wednesday and Saturday night.
About the Tennessee Education Lottery The Tennessee Education Lottery Corporation operates entirely from the revenue it generates through the sale of its products. Since January 20, 2004, the Lottery has raised more than $3.8 billion to fund designated education programs, including college grants and scholarships, after-school programs and the new Tennessee Promise initiative. In addition to the educational beneficiaries, players have won more than $10.1 billion in prizes and Lottery retailers have earned more than $978 million in retailer commissions.HOT LOTTO JACKPOT FOR TENNESSEE WINNER IS $5.5 MILLION! NASHVILLE – The HOT LOTTO jackpot won in Knoxville Wednesday night will actually be a higher final payout than the estimated $4.9 million —
Lotto America Tax Calculator
The Tax Calculator helps you to work out how much cash you will receive on your Lotto America prize once federal and state taxes have been deducted. You just need to enter details of your prize amount and where you purchased your ticket. Below the Calculator, you can learn more about federal tax and the local tax rates in each participating state.
Using the Prize Calculator
To calculate your final payout, follow the steps below:
- Enter the advertised prize amount you won.
- Use the dropdown menu to select which state you purchased your ticket in.
- Specify whether you have won a jackpot prize or not (for jackpot prizes, you can indicate whether you want to calculate the cash lump sum or the annuity).
- Press вЂSubmitвЂ™ to calculate your winnings.
The calculation will show you how much has been deducted in federal and state tax to leave you with the final payout value.
Disclaimer: Please note that the вЂLump Sum ReductionвЂ™ rate of 37.2 percent is the average difference between the advertised annuity prize and the value of the cash option. This means that the actual final cash value may vary slightly from that shown.
Time until draw:
State and Federal Tax
If you win a prize of more than $5,000, there will be an initial 24 percent withholding for federal tax. If you win the jackpot you are highly likely to move into the top federal tax rate and your prize will be subject to a 37 percent withholding, whether you select the cash lump sum or the annuity.
The cash figure represents the jackpot fund on the day of the drawing, while the larger annuity value (the one that is advertised ahead of the drawing) is how much you would receive pre-tax after the cash sum has been invested over 29 years. Find out more about how the Lotto America jackpot works.
For prizes between $600 and $5,000, you do not owe any federal tax but you are still required to report your winnings on a federal income tax form.
As well as federal withholding, you will also owe state taxes on prizes above $5,000 in most participating jurisdictions. The only states which do not tax prizes are South Dakota and Tennessee. Here are the tax rates for the participating states:Use this Lotto America tax calculator to work out how much cash you would be left with after a big win, once federal and state taxes have been deducted. ]]>