Topline<\/p>\n
The Powerball jackpot jumped to an estimated $1.1 billion for a Labor Day drawing, this year\u2019s largest lottery prize and Powerball\u2019s fifth-largest ever, though a lucky winner\u2014facing astronomical one-in-292.2 million odds\u2014could take home significantly less of that amount after paying required taxes. <\/p>\n
The prize is the largest lottery jackpot this year and Powerball\u2019s fifth-largest ever. <\/p>\n
Getty ImagesKey Facts<\/p>\n
A ticket holder matching all five white balls and a red Powerball for the jackpot can choose between a payout over 30 annualized payments or a one-time lump sum cash payout of about $498.4 million.<\/p>\n
The lump sum payout\u2014typically the preferred selection\u2014would be reduced to at least $378.7 million after a mandatory 24% federal tax withholding, while a federal marginal rate as high as 37%, depending on the winner\u2019s taxable income and other tax deductions, could cut the winnings down to $313.9 million.<\/p>\n
Annual installments would pay an average of $23.1 million with a 37% federal rate.<\/p>\n
Lottery winnings are subject to additional taxes in some states, with rates as high as 10.9% in New York ($54.3 million) to as low as 2.5% in Arizona ($12.4 million), though states like Florida, California or Texas don\u2019t tax winnings.<\/p>\n
What To Watch For<\/p>\n
The next Powerball drawing will be held Monday night. Mega Millions will hold its next drawing for a $302 million jackpot on Tuesday, with a cash option of $136 million. That prize would be reduced to $103.3 million after a 24% federal tax withholding or $85.6 million after a 37% federal marginal rate.<\/p>\n
Surprising Fact<\/p>\n
The jackpot is the fifth-largest in Powerball history. The fourth- ($1.3 billion) and seventh-largest ($842 million) were drawn in April and January of last year, respectively. <\/p>\n
Key Background<\/p>\n
Some of the largest U.S. lottery prizes ever won have been claimed over the last decade, after sweeping rule changes were announced in recent years by Mega Millions and Powerball to raise the ceiling for grand prize winnings. Mega Millions announced earlier this year that new rule changes, including improving the odds to win any prize from one-in-23 (from one-in-24) after removing one \u201cMega Ball\u201d from the drawing pool would improve the odds of winning the jackpot from one-in-302.6 million to one-in-290.4 million. Powerball announced rule changes in 2015, which increased the pool of white ball numbers contestants could choose from, lowering the odds of the jackpot from one-in-175.2 million to one-in-292.2 million.<\/p>\n
Further ReadingForbesMega Millions Raising Ticket Prices But Jackpots Getting Much Bigger\u2014Here\u2019s What To KnowBy Ty Roush<\/a>ForbesPowerball Jackpot Nears $1 Billion\u2014Here\u2019s How Much The Winner Could Take Home After TaxesBy Siladitya Ray<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Topline The Powerball jackpot jumped to an estimated $1.1 billion for a Labor Day drawing, this year\u2019s largest…\n","protected":false},"author":2,"featured_media":123406,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[28,24662,57220,52263,79032,57219],"class_list":{"0":"post-123405","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-lottery","10":"tag-lottery-jackpot","11":"tag-powerball","12":"tag-powerball-draw","13":"tag-powerball-jackpot"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/123405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=123405"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/123405\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/123406"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=123405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=123405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=123405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}