Powerball Jackpot Soars to $740 Million: Post-Tax Payout Revealed
The Powerball jackpot has surged to an impressive $740 million following a drawing where no tickets matched the winning numbers. This substantial amount reflects the excitement among potential players, but the post-tax payout figures tell a different story.
Key Details of the Powerball Jackpot
During the most recent drawing, none of the tickets matched the winning numbers: 19, 22, 30, 32, 59, and the Powerball number 1. This lack of winners has contributed to the growth of the jackpot ahead of the upcoming lottery drawing scheduled for Monday.
Choosing the Payout: Lump Sum vs. Installments
Winners have two options upon claiming their prize:
- A total payout of $740 million distributed over 30 years.
- A lump-sum payment of $346.1 million before taxes.
The lump-sum option is generally favored among winners. However, this choice comes with immediate financial considerations. Initially, winners will encounter a 24% federal withholding tax, reducing the payout to approximately $263 million. Additionally, a federal marginal tax rate of 37% could apply based on their total income, lowering the final amount to about $218 million.
Annual Payments Option
If a winner opts for the 30-year payout, they can expect about $15.5 million per year on average, after federal taxes are deducted. Nevertheless, state taxes may significantly affect the overall sum. In states like New York, state tax can reach up to 10.9%. Conversely, states such as California, Texas, and Florida do not impose taxes on lottery winnings.
Upcoming Drawing Information
The next Powerball drawing is set for Monday night at 10:59 p.m. EST. Interested players can watch the drawing live through Powerball’s website or YouTube channel. If no winners emerge from this drawing, the jackpot will continue to increase for the drawing on Wednesday night.
