Powerball Jackpot Hits $1.1 Billion, Winner’s Take Reduced by Taxes
The Powerball jackpot has surged to an impressive $1.1 billion after Saturday’s drawing ended without a winner. If no one triumphs in the upcoming drawing, the jackpot will continue to increase.
Details of the Powerball Jackpot
No tickets matched the winning numbers from Saturday: 1, 28, 31, 57, 58, and the Powerball number 6. This absence of winners means the jackpot is set to rise ahead of the next draw.
Winner’s Choices
Should someone win on Monday night, they will face an important decision. They can either receive the full $1.1 billion divided into 30 annual payments, or opt for a lump sum payment of approximately $503.4 million. Most winners tend to prefer the lump sum option.
Tax Implications for Winners
- A federal withholding tax of 24% will be deducted initially from the lump sum, reducing it to around $382.5 million.
- Additionally, winners may face the highest federal tax rate of 37%, potentially further lowering the total to about $317.1 million.
Choosing the annuity option means receiving 30 payments over three decades, averaging around $23 million annually after federal taxes.
State Tax Considerations
Winners must also consider state tax implications, which vary by location. Some states, like Florida and California, do not impose taxes on lottery winnings. Conversely, states like New York can tax winnings at high rates, up to 10.9%.
Upcoming Drawing Information
The next Powerball drawing is scheduled for Monday night at 10:59 p.m. EST. Powerball will broadcast this drawing live on their official website and YouTube channel.
