Powerball Jackpot Grows to $725 Million: Here's What the Winner Gets
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.
How much money will go to IRS if you win $725 million?
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'.
Does playing the lottery legally count as gambling?
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.
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.
How to play Powerball?
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.
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