The Powerball jackpot has soared to an impressive $1.3 billion, marking it the largest lottery prize since April 2024. This significant increase follows Monday night’s drawing, in which no ticket matched all six winning numbers.
The numbers drawn were 8, 23, 25, 40, 53, and the red Powerball number 5. Should a winner be determined in the upcoming draw, they will have the choice of receiving the jackpot in one of two ways: either as $1.3 billion paid out over 30 annual installments or as a lump sum cash option of $589 million, which is the more commonly preferred route.
Opting for the lump sum will result in a payout of approximately $447.6 million after the application of a mandatory 24% federal tax withholding. However, depending on their overall taxable income, the winner could be subjected to a higher federal tax rate of up to 37%, potentially reducing their take-home amount to about $371 million.
If the more gradual payment plan is selected, the winner would receive annual payments estimated at around $43.3 million. If they fall into the 37% federal tax bracket, their yearly payments would decrease to approximately $27.3 million. Additionally, state taxes apply, and these vary significantly; for instance, New York taxes lottery winnings at a rate of 10.9%, while states like Texas, Florida, and California impose no state lottery taxes.
Winning the Powerball entails extremely low odds, with ticket holders facing a probability of 1 in 292.2 million, slightly worse than the Mega Millions, which currently has odds of 1 in 290.4 million. Recent changes to the Mega Millions rules earlier this year have improved its odds for winning both the jackpot and lesser prizes.
Looking ahead, the next Powerball drawing is scheduled for Wednesday night. If no winner emerges, the jackpot could surpass previous records for the year. Meanwhile, the Mega Millions drawing is set for Tuesday, with its jackpot currently standing at $302 million.
Also Read : Bill Belichick’s Rough UNC Debut Signals Challenges Ahead
The anticipated Powerball prize, if claimed, will set a new high for 2024, outpacing the $526.5 million award received by a California winner in March. It will also signify the largest jackpot win since April of the previous year, when an Oregon resident won $1.326 billion.
