That $414 million Powerball jackpot comes with a big tax bite.
With the odds stacked against players hitting the Powerball jackpot, the only guaranteed eventual winner is Uncle Sam.
Based on the federal tax withholding of 24 percent, the IRS gets more than $210 million right off the bat of the $877.8 million cash option that the winner chose . The state of South Carolina, where the ticket was sold, gets its own $61 million in taxes. While lottery officials are required to withhold 24 percent for federal taxes, the top marginal tax rate of 37 percent means the winner would owe a lot more.
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