With the next Powerball lottery drawing scheduled for Wednesday night at a $1.2billion grand prize, many may wonder what winners actually take home after taxes.
The numbers were drawn Monday night for a $1.04 billion Powerball jackpot – but no-one won, meaning the prize pot has climbed to $1.2 billion. The next drawing will take place at 10:59pm ET Wednesday.
The jackpot – which is the result of 32 unsuccessful drawings – is the third-largest in the history of Powerball and the seventh largest in US lottery history.
But any winner would not come close to taking home the entirety of that 10-digit prize money, especially if they decided to take it all at once rather than in annual payments.
In fact, after federal withholding taxes of 24 percent and federal income taxes of 37 percent at the highest bracket, the prize money would come down to just $551.7million a one-time, lump-sum basis.
With the next Powerball lottery drawing scheduled for Wednesday night at a $1.2billion grand prize, many may wonder what winners actually take home after taxes
The Internal Revenue Service currently taxes income above $578,125 for single people and $693,750 for married couples, according to Fox News.
In addition, only nine states refused to take a state-levied income tax on lottery winnings.
Unless you live in Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington or Wyoming, the state government will likely take another cut.
California technically has a state income tax but does not apply those tariffs to lottery winnings.
The prize is still rising from where it would’ve been under the prior drawing, as the $1.04billion jackpot would’ve paid out a one-time sum of $301.2million.
The winning numbers for Monday night’s announced drawing were: 12, 26, 27, 43, 47 and the Powerball 5.
It took several hours to determine that no one had scooped the eye-watering prize, meaning it climbs by another $160 million ahead of Saturday’s drawing.
The prize has grown so massive because there have been 33 consecutive drawings since someone matched all five white balls and the Powerball to win the jackpot, dating back to July 19.
The winning numbers announced were: 12, 26, 27, 43, 47 and the Powerball 5
The prize is still rising from where it would’ve been under the prior drawing, as the $1.04billion jackpot would’ve paid out a one-time sum of $301.2million
That losing streak reflects the stunningly long odds of winning the jackpot, at 1 in 292.2 million.
Wednesday’s $1.04 billion jackpot is for a sole winner who chooses to receive the winnings through an annuity, paid annually over 30 years. Winners nearly always pick the cash option, which for Monday night´s drawing would be an estimated $478.2 million.
A Powerball ticket costs $2 in most states and players can pick their own numbers or have a computer make the selection.
Powerball is played in 45 states as well as Washington, D.C., Puerto Rico and the U.S. Virgin Islands.
Source: | This article originally belongs to Dailymail.co.uk
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