Massive Powerball Jackpot Reaches $416 Million-Estimated Post-Tax Winnings Detailed
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Jackson Pot Headlines
The whopping Powerball jackpot soared to an eye-popping $416 million - the year's grandest yet - after no tickets bagged all six numbers drawn on Monday night. However, the lucky winner, when they finally emerge, will likely take home a noticeably shrunken purse after coughing up taxes.
The Keys to the Kingdom
The six numbers drawn on Monday night were 5, 11, 18, 23, 38, and 9 for the red Powerball.
If a winner shows up in the next round, they can choose between receiving the $416 million in installments over 30 years or grabbing a one-time lump sum cash prize of $194.1 million - the preferred option.
If the lump sum payment is selected, the winnings will plummet to $147.5 million after a mandatory 24% federal tax snatch.
This significant drop could climb even higher, reaching $122.3 million, depending on the winner's taxable income and the federal marginal tax rate of up to 37%.
Should the winner go for the installment plan, their yearly payments would dip from around $13.87 million to $8.74 million once the 37% federal marginal tax rate is factored in.
Moreover, the winner may need to fork over additional taxes to their state, as places like New York gouge 10.9% from lottery winnings, while others, like Texas, Florida, and California, keep their pockets open.
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Keep Your Eyes Peeled
The Mega Millions jackpot prize draw is scheduled for Tuesday evening. A cool $301 million is up for grabs in the draw, with a lump sum cash option of $139.5 million on the table, making it the most substantial Mega Millions prize so far this year.
The Jaw-Dropper
1 in 292.2 million. That's the colossal odds a Powerball ticketholder has to conquer to win the jackpot. Compared to the Mega Millions jackpot, which offers even grimmer odds of 1 in 302.6 million, Powerball is the slim chance champ.
The Back Story
The most significant lottery prize of the year was a Powerball jackpot of $328.5 million, claimed by a ticket buyer from Oregon. An Oregon local also bagged the biggest lottery prize last year - a Powerball jackpot worth $1.326 billion. The winner, recently unveiled as Cheng "Charlie" Saephan, a Portland resident undergoing cancer treatment, shook the lottery world. The second and third biggest prizes of 2024 were both Mega Millions jackpot prizes worth $1.13 billion and $1.27 billion, respectively.
Reading Up
An Immigrant from Laos Battling Cancer Wins $1.3 Billion Powerball Jackpot (Forbes)
Mega Millions Jackpot Reaches $944 Million for Christmas Eve Drawing-Here's How Much the Winner Could Take Home After Taxes (Forbes)
- The Powerball jackpot, currently at a record-breaking $416 million, takes a steep fall when taxes are factored in, potentially leaving the winner with $122.3 million, should they opt for the lump sum payment and have a taxable income of up to 37%.
- The Mega Millions jackpot, currently at $301 million, presents equally modest odds of 1 in 302.6 million to win, making it one of the year's most taxable lotteries.
- Despite the jaw-dropping jackpot amounts and seemingly grim odds, winning either the Powerball or Mega Millions is still a dream for any lottery enthusiast, especially given the potential to slash their tax liabilities by choosing the installment payout option.
