A look back at some of the past lottery winners over the years, from how they won to their experiences after getting the money.
If you win the Powerball and take the lump sum payment, right away, nearly a quarter of it is withheld for federal taxes. And you're not off the hook yet.
That's because lottery winnings are treated as income by the federal government and most states, so the jackpots are subject to state and federal income taxes. However, there are 13 states that, or receive their winnings in a lump sum of cash. If they pick the annuity, they will eventually receive the entire advertised jackpot over the span of three decades. Whether or notMost jackpot winners go with the lump sum, which means they get the “cash value” of that jackpot.
So in the scenario where just one person wins the Powerball and selects that cash option, around $181.58 million of Wednesday's estimated prize would be withheld, dropping it to $575.02 million. Because the federal government counts lottery winnings as income, getting such a large jackpot would likely move the winner into a higher tax bracket, in which their income is taxed at 37%. So when the winner next files their taxes, they’ll likely have to give the IRS another 13% of that prize.
But for example, if you're from New York which has the highest state tax withholding at 8.82%, the net payout would drop to $394,225,645,KFMB would like to send you push notifications about the latest news and weather.
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