The estimated Powerball jackpot for Wednesday’s drawing is estimated to be an estimated $725 million prize Powerball Jackpot Hits $725 Million – the seventh-largest prize in Powerball history. But be mindful that winnings may decrease once taxes have been deducted.
If you happen to have the winning ticket, there are two methods for you to claim it: either as a lump sum of approximately $366.2 million or an annuitized prize worth the full $725 million and spread out over 30 years – giving more flexibility regarding tax payments.
When selecting the lump sum option, there is a mandatory 24% federal withholding that goes directly to the IRS for winnings over $5,000. Therefore if you select cash option instead, your share would be reduced by approximately $88 Million due to this upfront tax payment; you still will be responsible for paying 13% in taxes later.
Notably, the odds of winning a Powerball jackpot are approximately one in 292 million. Furthermore, it’s wise to examine your ticket for smaller prizes as even matching some numbers can result in significant winnings – in a recent drawing there were winners who matched four out of five numbers plus the Powerball for $100,000 with Power Play! Furthermore there were winners of $2 Million in Iowa and $1 Million in California!
How much is the Powerball jackpot now?
As no one has had a ticket that matched the winning numbers of all six The jackpot pool is expected to increase to $725 million, with the option to cash out $366.2 million.
To conclude, if you win the Powerball jackpot it is imperative that you understand its tax ramifications and the best strategies for claiming it.