Powerball Jackpot Rises: No tickets matched all six numbers chosen on Wednesday night, increasing the Powerball jackpot to $925 million, the fourth largest in the game’s history. However, the eventual winner will receive a much lesser sum after taxes.
The payout options for the next draw’s winner include a lump sum payment of $432.4 million or a $925 million payout split into 30 annual installments, which is frequently the more preferred option.
After a 24% statutory federal tax withholding, the lump sum payment will be reduced to $328.62 million.
The winner’s earnings could be reduced to $272.41 million by a federal marginal rate as high as 37%, depending on their final taxable income.
If the 37% federal marginal rate is used, the winner’s annual payments under the installment plan, which are currently about $30.83 million, might fall as low as $19.42 million.
As some jurisdictions, like New York, tax lottery winnings at a rate of 10.9%, others, like Texas, Florida, and California, don’t tax them at all, the winner’s earnings may be subject to additional taxes depending on the state in which they reside.
A ticket holder will have to overcome improbable odds of 1-in-292.2 million in order to win the enormous Powerball jackpot. Even worse, the odds of winning the Mega Millions jackpot are 1-in-302.6 million.
Powerball Jackpot Rises To $925 Million
$1.94 trillion. That is the amount of the biggest lottery jackpot ever won in the United States, which a Californian Powerball ticket holder did in November of last year.
The $1.6 billion Mega Millions jackpot was won last month by a single ticket purchased in Florida; it was the game’s largest-ever payout and the year’s biggest lottery win overall. Officials verified on Wednesday that the winner came forward and accepted their award on Monday. But the winner’s identity remained a secret since Florida law permits prize winners to maintain their anonymity for up to 90 days following their claim.