Did Anybody Hit the Powerball Jackpot?
On Saturday night, no one won the Powerball jackpot – currently the ninth-largest lottery prize ever awarded in U.S. history and growing by millions every week – leading to no winner being announced for this massive lottery prize.
Odds of winning are one in 292.2 million. Play for just $2 per play to select five white balls between 1 and 69 and one red Powerball between 1 and 26.
Odds of winning
Has Anyone Won the Powerball Jackpot Online?
Although Powerball tickets may be purchased online, your odds of winning its jackpot remain unlikely. According to lottery statistics, 1 out of 292.2 Million is your odds of snaring it!
To improve your chances of winning, an additional US $1 ticket purchase of Power Play multipliers may increase payouts by as much as US $600,000. Match three or four main numbers and receive payouts of US $1 Million!
But there’s no guarantee you’ll win either the jackpot or any prizes, since odds for every combination remain equal unless your numbers were randomly generated by a random number generator.
If you win the jackpot, your prize money is subject to taxes as any prize from Powerball ticket is. But your tax bill may not be as substantial.
Taxes on winnings
Those lucky enough to hit the Powerball jackpot may have found themselves with an unexpected windfall of funds – but did you know that winnings from lottery games are subject to taxes?
The federal government withholds 24% of cash jackpots for taxes, so you could owe more in taxes than anticipated.
State taxes must also be considered, which could eat into your winnings significantly. At present, Alabama, California, Delaware, Hawaii, Nevada, South Dakota Tennessee Utah Texas New Hampshire do not tax lottery winnings.
Winners have the option to receive their prize either as a lump sum payment or through an annuity plan spread out over 30 years. No matter your expected future tax bracket, selecting an annuity option could help ease the tax burden and save on taxes in the process.
Taxes on second- and third-tier prizes
Finding an unexpected amount of money may feel like an incredible blessing; the temptation may be to spend it all on new cars or travel plans immediately; however, taxes could make this less likely.
The IRS and all but a few states tax prizes, awards, sweepstakes winnings, raffle proceeds and lottery proceeds as ordinary income. Prize earnings should generally be treated as part of your regular earnings.
But if you win a Powerball jackpot, your options for receiving it could include either an annuity that pays out over 30 years or as a lump sum payment–both options will incur significant taxes.
Federal taxes will take 24%, with state governments adding another 13% to your winnings – this would reduce your total prize by about $187.8 million; more will likely be due when filing taxes.
Taxes on annuities
Winners of a Powerball jackpot prize can choose between an immediate lump sum and annuity payments over 29 years – often an annuity is preferred as it allows winners to avoid taxes.
But selecting an annuity can be challenging and should be undertaken with professional assistance.
Tax considerations play a vital role when making this decision, with any winner of this lottery owing federal income taxes on their winnings.
State taxes also play a key role in your decision. They vary by state, but generally, how much is owed depends on how much money one makes.
Some states do not levy taxes on lottery winnings at all, while others such as North Dakota and New York withhold between 2.9% and 8.82% – so your lump sum or annuity could differ by hundreds of millions depending on where you live.