I just found a website that says this is how to do it
Go to Hotmail.com and log into your account.
Look for the "Help" link, which is in the top right of the screen.
Type "Close account" into the search box at the top of the Help window.
Choose the "Close your account" link.
Follow the instructions on the screen to close your Hotmail account (there are separate processes depending on whether you have a free or a paid subscription).
You may have to speak to MSN/Hotmail customer support to complete the process of closing your account.
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