That means another $67.2 million in addition to the $124.0 million withheld – a total of $191.2 million in federal taxes.Īll this would be part of our winner's 2023 federal income tax return and would ultimately leave them with $325.6 million, assuming no other deductions. But the total lump sum is subject to a federal marginal tax rate of up to 37%. That leaves our winner with $392.8 million. If our winner takes the $516.8 million lump sum payout, they'll automatically pay the IRS $124.0 million, or 24% off the top in federal tax withholding, according to Forbes. No one has chosen annuity payments since 2014, according to Axios. About $1 billion in an annuity of 30 graduated payments over 29 years.Powerball champs, who are advised to seek financial counsel before making decisions, have two options to collect the prize: The Wednesday's winner will find that Powerball and Mega Millions lottery winnings are treated as taxable income. The next drawing, on Saturday, is for $20 million and you can bet Powerball fans will be calculating what numbers to play. The winning jackpot numbers were 7-13-10-24-11, and the red Powerball was 24. That's because the Powerball winner, even though they've beaten the 1-in-292.2 million odds, must pay federal taxes and possibly state and city taxes, depending on where they live. A winning ticket for the $1.08 billion Powerball, the third-largest in the game's history, was sold in California Wednesday–but the winner will probably take home only about a third of that.
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