Survivor Prize Structure and Payout Options
Survivor winners can choose between a lump sum or an annuity paid over 30 years. The prize is set before taxes, and the final amount kept depends on the payout option chosen.
Federal and State Taxes on Survivor Winnings
The IRS taxes Survivor winnings as ordinary income. The top federal rate is 37%, and winners typically face immediate withholding. State taxes vary, with some states taxing prizes and others exempting them.
Final Take-Home Amount for Survivor Winners
After federal and state taxes, a lump sum winner may keep roughly 60% to 75% of the advertised prize. Annuity payments are taxed each year as received.
