How much money do BILLION dollar lottery winners actually take home after taxes?
- On Monday night, the numbers were drawn for a $1.04 billion Powerball jackpot – but no one won, meaning the prize pool has risen to $1.2 billion
- The jackpot – which is the result of 32 failed draws – is the third largest in Powerball history and the seventh largest in U.S. lottery history
- The prize money would amount to just $551.7 million, after federal taxes.
With the next Powerball lottery drawing scheduled for Wednesday night with a top prize of $1.2 billion, many may be wondering what the winners will actually take home after taxes.
The numbers were drawn on Monday night for a $1.04 billion Powerball jackpot, but no one won, meaning the prize pool increased to $1.2 billion. The next drawing will take place on Wednesday at 10:59 PM ET.
The jackpot – which is the result of 32 failed draws – is the third largest in Powerball history and the seventh largest in U.S. lottery history.
But a winner wouldn’t get close to the full ten-figure prize money, especially if he decided to receive it all in one lump sum rather than in annual payments.
In fact, after federal withholding taxes of 24 percent and federal income taxes of 37 percent at the top bracket, the prize money would amount to just $551.7 million on a one-time, lump-sum basis.
With the next Powerball lottery drawing scheduled for Wednesday night with a top prize of $1.2 billion, many will be wondering what the winners will actually take home after taxes
The Internal Revenue Service currently taxes income above $578,125 for singles and $693,750 for married couples, according to Fox news.
Furthermore, only nine states refused to impose a state income tax on lottery winnings.
Unless you live in Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington or Wyoming, the state government will likely make another cut.
California technically has a state income tax, but does not apply these rates to lottery winnings.
The prize is still up from where it would have been in the previous drawing, as the $1.04 billion jackpot would have paid out a one-time sum of $301.2 million.
The winning numbers for Monday evening’s announced drawing were: 12, 26, 27, 43, 47 and the Powerball 5.
It took several hours to determine that no one had won the eye-watering prize, meaning it will increase by another $160 million ahead of Saturday’s drawing.
The prize became so large because there have been 33 consecutive draws since someone matched all five white balls and the Powerball. win the jackpotdating from July 19.
The announced winning numbers were: 12, 26, 27, 43, 47 and the Powerball 5
The prize is still up from where it would have been in the previous drawing, as the $1.04 billion jackpot would have paid out a one-time sum of $301.2 million.
That losing streak reflects the stunning great chance of winning the jackpot, at 1 in 292.2 million.
Wednesday’s $1.04 billion jackpot is for one winner who chooses to receive the winnings through an annuity, paid annually over 30 years. Winners almost always choose the cash option, which would amount to an estimated $478.2 million for Monday night’s drawing.
A Powerball ticket costs $2 in most states and players can choose their own numbers or let a computer make the selection.
Powerball is played in 45 states, as well as Washington, DC, Puerto Rico and the US Virgin Islands.