Don't get too excited about the big Mega Millions jackpot. Taxes take a bigger bite out of winnings than you'd expect. - From CNBC
lottery history, and the game's third largest, according to a release from the Multi-State Lottery Association.
That estimated $540 million prize is only if the winner opts to take the winnings in 30 payments over 29 years.
(Of course, the final tax bill will vary based on other elements of your tax situation, including the potential for deductions like state taxes paid or additional income from interest and earnings on invested winnings.) "In New York City, you pay federal, state, county and city taxes," Susan Bradley, a certified financial planner, told CNBC earlier this year.
The IRS allows you to gift up to $14,000 per recipient each year, tax-free, with bigger gifts eating away at your lifetime exemption of $5.45 million.
The IRS generally allows you to claim donations worth up to 50 percent of your adjusted gross income as a deduction, with excess carried over for up to five years.