Tuesday, May 30, 2023
HomeBusinessPowerball jackpot balloons to $1.2 billion after no lottery wins Halloween draw...

Powerball jackpot balloons to $1.2 billion after no lottery wins Halloween draw — here's the tax bill if you win

Topline

No one hit Monday night’s billion-dollar Halloween Powerball draw, sending the jackpot in Wednesday’s next draw soaring to $1.2 billion, despite any lucky draw The winner of the lottery will face a huge tax bill and take home far less than the headline prize – that’s how much.

Wednesday’s Powerball has a $1.2 billion head prize.

Getty Images

Key Facts

Powerball lottery winners can choose Get the full bonus as an annuity (a series of 30 payments made over 29 years) or as a one-time lump sum.

The single prize is lower than the advertised jackpot (emphasis on the value of the annuity prize), but is the winner The most popular option in the 2019-09-20, Wednesday’s cash prize is estimated to be worth $597 million.

The mandatory federal withholding tax of 24% on gambling winnings will immediately make a winner’s With a reduction of $143 million, he will take home $454 million, although the taxman is far from done.

The top federal marginal tax rate is 37%, which means that a single taxpayer without tax deductions such as other income, dependents, or charitable donations needs to set aside an additional $78 million in taxes, and The total bonus is expected to be reduced to $376 million.

State and city taxes, depending on where the winner lives and where they purchased the winning ticket, are likely to eat the money farther.

The winner of the opt-in annuity payment will receive about $40 million per year, although this will be reduced to $25 million through federal taxes and may be further cut through state and city taxes.

Key Background

Jackpots in lottery jackpots have skyrocketed in recent years. Huge jackpots are a feature of lottery design, not a bug, and the rules are structured to make it easier to win but harder to win. The lottery said the Powerball has been drawn 38 times, the last of which was in August, and Wednesday’s upcoming draw marks the lottery’s second-largest jackpot in its history and the fourth-largest lottery prize in U.S. history. Although there were no jackpot winners in Monday night’s Halloween draw, Powerball said more than 5.4 million tickets were won with cash prizes totaling nearly $60 million. Of those, 13 tickets matched all 5 white balls to win $1 million, with three selected to double the prize with an extra $1.

Notes

Wednesday’s Powerball draw will be broadcast live from the Florida Lottery Studios at 10:59pm ET. The drawings are also live streamed online at Powerball.com. The lottery says the odds of winning the $1.2 billion jackpot are 1 in 292.2 million.

Big number

$1.59 billion. This is the value of Powerball’s biggest jackpot, shared among three winners in California, Florida and Tennessee in January 2016. The lottery says the prize holds the world record for the largest lottery jackpot.

Further reading

Powerball jackpot hits $1 billion — here’s what the winner actually takes home after taxes (Forbes)

Mega Millions: If you win the $1 billion lottery jackpot (Forbes), do this

Powerball jackpot hits 1B again Dollar. One expert said it would happen more often. (WaPo)

Follow me on Twitter or LinkedIn. Give me a safety tip .

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

LAST NEWS

Featured NEWS