With the annuity option, annual payments of about $11.3 million would be reduced yearly to $8.5 million from about $2.8 million going to the IRS. Over 30 years, that would mean $255 million for you and $85 million paid in federal taxes.
More from Personal Finance:
Your travel budget will go the farthest in these international cities
5 ways to make the gig economy work for you
Try this trick to get along with your co-workers, even the ones you can’t stand
On top of that, you face state taxes unless you live in one of a handful of places where lottery wins are tax-free. In states that do take a piece, the range is from a high of 8.82 percent in New York to a low of 2.9 percent in North Dakota.
The $340 million jackpot amount marks the 10th biggest in the game’s history. The largest was $656 million in 2012, when three ticket holders hit the winning numbers.