Lottery officials say the Powerball jackpot for Wednesday’s drawing has ballooned to an estimated $750 million, which would be the fourth-largest lottery prize in U.S. history.
The winner could choose to receive the nearly billion dollar prize in annuity payments over 29 years or take the lump sum of $465.5 million.
If you hit the jackpot, congratulations, now you’re in the one percent. That also means a higher tax bracket.
Accoring to CNBC, Uncle Sam takes up to 37 percent in taxes. The federal witholding is 24 percent and another 13 percent would be due to the IRS. That would reduce the cash winnings to $293.3 million. But then there are state taxes, which varies from state to state.
The Powerball jackpot was last hit in New York in the December 26 drawing. Since then, there have been 25 drawings in a row without a jackpot winner.
Powerball is played in 44 states plus Washington, D.C., Puerto Rico and the U.S. Virgin Islands, all of which collectively oversee the game. Drawings are held twice a week. Five white balls are drawn from a drum containing 69 balls and one red ball is selected from a drum with 26 balls. Players can choose their numbers or let a computer make a random choice.
The odds of winning are one in 292.2 million.