ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

Powerball Jackpot Grows to $725 Million: Here's What the Winner Gets

Since its inception in 1992, the lottery has offered millions of people to turn their materialistic dreams into a reality.
UPDATED JAN 22, 2024
Cover Image Source: Getty Images | Andrew Spear
Cover Image Source: Getty Images | Andrew Spear

There has been no winner for the Powerball Jackpot and now before the Wednesday draw the top prize has jumped to an astounding $725 million with the winner's payout reaching more than $340 million. This jump made the game prize one of the top 10 biggest prizes in the game's history, as per Powerball. A very unique thing about this particular lottery is that one can avail of the lottery money over the course of 30 years with annuity payments, John Chichester Jr, the CEO of Chichester Financial Group told CNBC. This will also help avoid an upfront tax bill that will be generated based on the huge sum of money.

Pexels | Ann H
Image Source: Ann H/Pexels 

First off, there's the mandate of 24% federal withholding that will go to the IRS. This only applies to any winning that is more than $5000. If you win and choose the upfront payment of $340 million, then be ready to pay $81.6 million. Many are also under the impression that they are all done once they pay the 24% but there's the additional 13% that the winner is still responsible for.

As of 2023, the top marginal income tax rate is 37% for taxpayers with income more than $539,900 for single filers and more than $693,750 for couples filing jointly. So, it comes as no surprise that winning the jackpot will move you up to the '35% tax bracket'.



 

The lottery does count as gambling and any big proceed will be considered gambling income, which is exactly why the wager will have an automatic withholding of 24%. This is why taking the money annually can actually avoid some tax implications. Say you win the jackpot of $1 million and take it all at once, you'll face 24% plus 13% but if you take $50,000 annually you may be taxed at 22% which will help you save around $150,000 in taxes.

Image Source: Peaton Hugo/Pexels
Image Source: Peaton Hugo/Pexels

What happens if I win Powerball?

You will have to meet the lottery officials who will then tell you the procedure to redeem your money. It's also advisable to talk to a financial expert who might be able to give you a few tips on how to collect your winnings and save taxes. It is also advisable to not do anything rash and most of all, protect your privacy.

What is the cost of a Powerball ticket?

Each ticket is worth $2.00 and you can pay an extra dollar for the 'power play' that will increase your payout for the non-jackpot prizes, as per USA Today.

Since its inception in 1992, the lottery has offered millions of people to turn their materialistic dreams into a reality. The Powerball drawing is broadcast live at 10:59 p.m. ET each week on Monday, Wednesday, and Saturday. To play the lottery you need to select five white ball numbers that are between 1 and 69. Then you need to pick one red ball or Powerball, between 1 and 26. If any one number matches the Powerball drawing, then you will be winning a prize but if you are looking to hit the jackpot then here's a guide to winning it.



 

1 matching number that is the Powerball number is equal to $4,1 matching number plus the Powerball number is equal to $4, 2 matching numbers plus the Powerball number is equal to $7, 3 matching numbers are equal to $100, 4 matching numbers is equal to $100, 4 matching numbers plus the Powerball numbers is equal to $50,000, 5 matching numbers is equal to $1 million and 5 matching numbers plus the Powerball number is equal to grand prize.

MORE ON MARKET REALIST
The player, Andy Schwartz registered the first loss of a car since Seacrest took over as host.
1 hour ago
The guest kept his grandparents' antique instruments under his bed for years.
3 hours ago
Harris wasn't the only one who came up with an answer that shocked everyone.
4 hours ago
Despite getting a high auction estimate, the owner of the Meiji Period lamp chose to keep it.
23 hours ago
The player, Gabriel Berkowitz pulled off a perfect night winning over $45,000 and a car.
1 day ago
Harvey showed no mercy after he found out that Sweet Lou Dunbar didn't know how apps work.
1 day ago
The founder of Plop Star made an unforgettable entry and a sad exit from the show.
2 days ago
The host is otherwise quick to reprimand families for backing absurd answers.
2 days ago
While the Marvel comic book fetched a $50,000 appraisal, Harrison felt it was too rich for him.
2 days ago
Jimmy Alexander became the first player to lose a brand-new car on season 43 of the show.
3 days ago
The contestant, Brianne Peterson got extremely unlucky with her letter picks for the final puzzle.
3 days ago
The guest was told that the Jasper Johns Flag Print wouldn't be valuable but it was worth thousands.
3 days ago
It didn’t help that Alvin Rosales was playfully scolded by the host just before losing the Bonus Round.
3 days ago
The photos featured some looks of the show's legendary former host, Alex Trebek, as well.
3 days ago
The player, Kate Stuntz, pulled off a miraculous win to take home over $68,000 and a trip to Iceland.
4 days ago
The owner couldn’t believe the value of Jane Peterson’s "The Floats" gouache painting.
4 days ago
The player, Callie DeWeese, failed to choose the right letters in the Bonus Round, leading to her loss.
4 days ago
The personal digs at the host have been relentless on the show by producers and players.
5 days ago
The guest had no idea how valuable her grandfathers Dutch tinware coffee pot was.
6 days ago
It wasn't one of Steve Harvey's jokes that cracked Bridget up so bad.
6 days ago