The $2.04 billion Powerball jackpot has a winner in an unexpected turn of events. Powerball said on Tuesday afternoon that one winning Powerball lottery jackpot ticket was purchased in Altadena, California. That implies that someone somewhere picked all six winning numbers in the Powerball drawing on November 7. The winning ticket holder has taken home the biggest payout in both U.S. lottery and Powerball history. Of course, the winner will also receive a lot less money than stated due to taxes.
In 2016, three ticket holders split a $1.586 billion Powerball prize, setting a new record. One person won the $1.537 billion prize that represents the highest Mega Millions lotto payout to date in 2018.
The probability of winning the Powerball jackpot on November 7 was one in 292.2 million. There had been no big prize winners in each of the previous 40 lotteries since August. But lottery officials also point out that this year, the Powerball has already been hit seven times.
Thus, a lot of people are usually curious as to how much a lucky multi-billionaire jackpot winner will take home after taxes.
Did Anyone Win the $2,04 Billion Powerball Jackpot on November 7th?
California Powerball Winner: Yes, the Powerball lottery reported that a winning ticket from the drawing on Monday, November 7 was purchased in California. In the drawing held on November 7, the winning Powerball numbers were 10, 33, 41, 47, and 56, while the Powerball was 10.
According to Powerball authorities, 22 $1 million winning tickets were sold in various states, while one $2 million winning ticket was purchased in Florida.
What is The Powerball Payout?
For the record-breaking drawing on November 7, the Powerball lottery's advertised cash value was $997.6 million.
Powerball Annuity or Lump Sum Payout?
If someone wins the Powerball lottery jackpot or any lottery reward, they have a choice between two different ways to get their money. They have two options for receiving the payout: either as an annuity, which would be paid out in thirty progressive amounts over the course of twenty-nine years, or as a lump sum. The lump sum payoff is typically chosen by lottery winners.
Despite the fact that $997.6 million and $2.04 billion are both large sums of money, the lucky Powerball lottery winner will still have to pay a sizable amount in taxes.
Depending on where a Powerball winner lives, one of those tax bills will be from the federal government and another one might be from the state. The precise amount of tax that the winner must pay will depend on a number of variables, including as the payout option they select and the state tax rate that applies.
This is so that lottery winnings aren't taxed in all states. The tax rates for lottery winnings in other states that do them typically range from approximately 3% to about 11%. The lucky ticket winner of Monday's $2.04 billion prize, for instance, would simply have to pay a large federal tax bill because California doesn't tax lottery winnings.
However, the amount that the Powerball jackpot winner would take home after taxes is going to be considerably less than the world record $2.04 billion that has been splashed over lottery news headlines.
How Much Powerball Taxes Do You Pay?
Take a few deep breaths and secure and preserve your winning ticket if you are the fortunate winner of Monday's enormous Powerball jackpot (or if you won other lottery cash prizes from a Powerball or Mega Millions game). Then, to think about and prepare for the numerous tax ramifications of winning the lotto, you'll probably want to work with a skilled financial advisor.
This is due to the fact that the IRS withholds 24% of lottery winners' prizes. If the Powerball jackpot winner chose to take the $997.6 million lump sum payment, they would be liable for federal income tax at the maximum tax rate of 37%. The $2.04 billion Powerball jackpot winner's lottery earnings would be included on their 2022 federal income tax return.
For 2022, single filers who earn more than $539,900 and joint filers who earn more than $647,850 are subject to the top federal income tax bracket (or 37%). The federal income tax brackets have been raised for 2023 to account for inflation.
The majority of states tax lottery wins as income for tax reasons, and the rates of taxation vary from state to state. However, considering the record-breaking magnitude of the Powerball lottery jackpot, the billion-dollar jackpot winner's state taxes might still be a sizable sum.
Can the winner of the California Powerball remain unidentified?
It won't be possible for the $2.04 billion Powerball winner to remain incognito. That's because the Altadena, California, store where the winning Powerball ticket was purchased. In the state of California, lottery winners must publicly disclose certain essential details, including their names.
However, winners of the Powerball in other states might be able to remain nameless. In order to be certain that you can maintain your anonymity if you win the Powerball, check the lottery regulations in your state.
Days of Powerball Drawings
Every Monday, Wednesday, and Saturday at 10:59 p.m. ET is Powerball drawing day. Each play costs $2 for tickets. In addition to the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, 45 states also sell Powerball tickets.
Alabama, Alaska, Hawaii, Nevada, and Utah are the five states that don't take part in Powerball.
