So wait...$800 million nets you maybe $350 million after taxes? $450 million is the government’s share for you winning??!!
Yes, that is sort of correct.
If you get it in one lump sum, that jackpot is reduced to something less than half (IIRC), then taxed (federal and state, if any).
Annual payouts are taxed year by year and paid out over 35 years, I think.
I just checked and I was slightly incorrect.
The one lump sum is reduced to slightly MORE than half, then taxed at 25% federal taxes. An $800M jackpot, lump-summed and after fed taxes, would be $372M.
In my state (WA), there are NO state taxes on lottery winnings!