If you manage to win Powerball’s$1.6 billion dollar jackpot in their next drawing you could still only end up with $492.9 million only after just one year and it’s all due to the IRS taking their share of the prize.
For this Saturday’s drawing the winner, in case their is one, will be offered the option to have the prize be given to him fully in a three decade period or take the upfront option of half the prize, in this case it’ll be $782.4 million dollars, but that amount is before taxes.
How much taxes will I pay if I win Powerball’s jackpot
The odds of winning the Powerball jackpot are 1 in 292 million and let’s imagine that the winner chooses to take the upfront $782.4 million payment, the individual would see $187.8 million discounted for taxes, but that’s not all the money they’ll have to hand to the IRS.
If the winner doesn’t reduce considerably their taxable income due to the prize, like making donations, more money is going to be claimed by the IRS and given the current rates that will take out another $101.7 million leaving the prize money at $492.9 million a year away from winning it.
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Taxes are also dependable on the winner’s state of residency, as some states don’t have income tax or consider lottery winnings not taxable, while other impose a top tax rate above 10%.
Despite that, winning the lottery gives a person the opportunity to see more money that most people ever make in their lifetime.
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