I saw this today on CNBC – A single ticket hit Powerball’s $699.8 million jackpot. Here’s the winner’s tax bill: https://www.cnbc.com/2021/10/05/someone-hit-powerballs-699point8-million-jackpot-heres-the-tax-bill.html. Longer article. Worth noting the IRS will have a bigger tax bill when taxes are filed. The IRS holds 24% from the initial payment and the going maximum IRS tax rate is 37%. Looks like California doesn’t tax lottery winners for whatever they win in a lottery drawing so that’s a savings there.
There’s a Powerball winner in California who’s about to be ultra-wealthy — even after giving good ol’ Uncle Sam a cut of the windfall.
A single ticket sold in the Golden State matched all six numbers drawn Monday night to land the game’s $699.8 million jackpot. The top prize had been growing since early June when a ticket sold in Florida won $286 million.\
Of course, the advertised amount is more than what the person will end up with. Winners get to choose between taking their prize as either a lump sum or an annuity paid over 30 years, and either way taxes eat up a good portion of the winnings.
For this $699.8 million Powerball prize, the cash option — which most people go with — is $496 million.