Just in time for the Monday night drawing, which will take place on Halloween, or October 31, the advertised Powerball jackpot has increased to $1 billion. Only twice in the history of Powerball has the expected jackpot been this large.
A Powerball lottery ticket holder needs to match six numbers from the Powerball drawing to win the jackpot. On Saturday, October 29, the most recent drawing was held, and nobody matched all six numbers. Therefore, everyone will be watching Monday night’s Powerball drawing.
One in 292.2 million is the estimated probability of winning the Powerball jackpot. Stranger occurrences, though, have occurred in recent lottery draws. Officials from the lottery, for instance, note that the Powerball has already been hit six times this year. This has caused many people to wonder how much money the Powerball prize winner will receive after taxes.
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What Are The Saturday Night Powerball Winning Numbers?
The winning numbers in the Powerball drawing held on Saturday, October 29, were 19, 31, 40, 46, 57, and the Powerball was 23.
However, no one took home the $825 million Powerball prize after Saturday night’s drawing, which caused the estimated $1 billion Powerball jackpot for the October 31 lottery to rise. According to lottery officials, Monday’s reward will surpass Saturday’s $825 million award, the second-largest jackpot in Powerball history.
What Will The Powerball Jackpot Winner Get?
For the drawing on Saturday, the Powerball lottery‘s announced cash value is around $497.3 million. One of two options is available for the jackpot winner of the Powerball drawing. They have two options for receiving the prize money: either as an annuity, which would be paid in thirty progressive amounts over twenty-nine years.
While $497.3 million and $1 billion are both large sums of money, Monday’s lucky Powerball lottery winner (if there is one) will also have to pay a sizable amount in taxes. Depending on where the Powerball winner lives, one of those tax bills will come from Uncle Sam, and another might be from the state.
The precise amount of tax the winner must pay will depend on variables, including the payout option they select and the state tax rate that applies. (Some states do not tax wins from lotteries. The tax rates for lottery wins in other jurisdictions usually range from just over 3% to about 9%).
As a result, the Powerball jackpot winner will receive much less money than the $1 billion that has been plastered across news stories about lotteries.
Mucho $$. Mega Millions + Powerball rises to $1B jackpot. pic.twitter.com/juIcJHXIW9
— Avajoye Burnett (@AvajoyeWJZ) October 16, 2018
What Taxes Apply To Lottery Winnings?
So, take a few deep breaths if you’re the lucky winner of Monday’s Powerball jackpot. Then, evaluate and prepare for the tax ramifications of your lottery victory by working with a skilled financial counsellor.
The IRS deducts 24% of lottery winners’ winnings from their payouts. If the winner of this Powerball jackpot chose to take the $497.e million lump sum payment, they would be liable for federal income tax at the maximum tax rate of 37%. The Powerball jackpot winner’s federal income tax return for 2022 would include information about the lottery winnings.
Most states tax lottery wins as income for tax reasons, and tax rates vary from state to state. Given Monday’s Powerball lottery jackpot, the winner’s state taxes may still total a sizable sum.
