If the Powerball winner takes the lump sum, right away nearly a quarter of the prize is withheld for federal taxes. And they're not off the hook yet.
That's because lottery winnings are treated as income by the federal government and most states, so the jackpots are subject to state and federal income taxes. However, there are 13 states that, or receive their winnings in a lump sum of cash. If they pick the annuity, they will eventually receive the entire advertised jackpot over the span of three decades. Most jackpot winners go with the lump sum, which means they get the “cash value” of that jackpot. For Powerball's $1.
But for example, if the winning ticket had been bought in California, which doesn't have a state tax on lottery prizes, the net payout would have dropped only to $391,271,812 for the cash option,
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Mega Millions and Powerball Jackpots Continue to GrowBoth Mega Millions and Powerball jackpots have reached significant amounts after multiple rollovers. The Mega Millions jackpot is currently estimated at $875 million, while the Powerball jackpot stands at $600 million. The last Mega Millions jackpot was won on December 8, 2023, in California, and this is only the sixth time in the game's history that the jackpot has reached such a high amount. The odds of winning the grand prize in Mega Millions are 1 in 302,575,350. Powerball tickets are also available for $2.
Source: fox32news - 🏆 547. / 51 Read more »
Lucky Chicago suburb keeps selling winning lotto tickets: First Mega Millions, now PowerballFor the second time in a week, one lucky Chicago suburb just sold a winning lotto ticket.
Source: nbcchicago - 🏆 545. / 51 Read more »
Woman Accidentally Buys Powerball Ticket Instead of Mega Millions TicketA woman in Virginia mistakenly bought a Powerball ticket instead of a Mega Millions ticket. Her numbers matched the first five winning numbers of the Powerball drawing, but she missed the Powerball number. A math professor also won $100,000 after buying a Powerball ticket to demonstrate the improbability of winning the lottery.
Source: nbcchicago - 🏆 545. / 51 Read more »
Drawing held for $865 million Powerball jackpot day after winner nabs $1.13 billion Mega Millions prizeA jackpot winner in Wednesday's Powerball drawing could choose to receive the money in annuitized payments or take a lump sum estimated at $416.1 million.
Source: WGAL - 🏆 331. / 59 Read more »
When was the last time an Ohioan won Powerball, Mega Millions jackpot?Nobody won the $758.1 million Powerball jackpot in the lottery drawing for Saturday, March 24, 2024, causing the jackpot for the next draw to rise past $800 million.
Source: 10TV - 🏆 560. / 51 Read more »
Nearly $2 billion is up for grabs as Mega Millions and Powerball jackpots soarIt's been months since anyone has won a jackpot.
Source: nbcchicago - 🏆 545. / 51 Read more »