Powerball Jackpot Grows to $748 Million—Here’s How Much A Winner Could Take Home After Taxes - Forbes

Breaking NewsPowerball Jackpot Nears $750 Million—Here’s What A Winner Would Take Home After TaxesByZachary Folk, ToplineThe Powerball jackpot grew to $748 million after no winning tickets were drawn on Saturday night, however a potential winner would ultimately take home far less after taxes. No winners were drawn on Saturday night, but multiple people won prizes of at least $1 million.MediaNews Group via Getty ImagesKey FactsNo tickets matched all five numbers drawn on Saturday night (6, 17, 27, 48, 50 and Powerball number 5), so the jackpot grew again, to an estimated $748 million for the next drawing. If a winner is drawn on Monday night, they will be given an option to take the entire $748 million in 30 annual payments, or receive a lump sum worth about $325.1 million immediately. Most winners opt to take the lump sum, and if a winner does so on Monday they will immediately face a 24% federal withholding tax, bringing the prize down to about $247 million. Income from the prize will likely put winners in the highest tax bracket, meaning they would also face a 37% federal marginal rate—bringing the prize down further to about $204.8 million. If a winner takes the annuity, they will instead receive their prize in 30 payments that grow by 5% each year for the next 29 years—for a grand total of about $471 million after factoring in federal taxes. Winners will also face state taxes, which can range as high as New York’s 10.9%—although some states, including Texas, California and Alaska, do not tax lottery winnings at all. The next drawing is scheduled for Monday night at 10:59 p.m. EDT. Players can watch the drawing live on Powerball’s website or YouTube channel. 1 in 292.2 million. Those are the odds for winning the Powerball jackpot, which involves matching the numbers on all five white balls drawn (between 1 and 69), as well as the number on the red Powerball (between 1 and 26). Although no players won the jackpot of $719 million on Saturday night, six walked away with seven-figure winnings. Multiple players matched the numbers on all five white balls, including three players in California, one in Maryland and one in Texas, winning the lottery’s $1 million prize. A sixth player in Virginia purchased the Power Play option for $1 more, doubling that sum for a $2 million prize. The odds of winning Powerball’s second-biggest prize are still steep—about one in 11.6 million, according to the lottery.