Summary:
Following the absence of a winner on Saturday, the Powerball jackpot for Monday night has surged to an impressive $1.04 billion, marking the fourth-largest jackpot in Powerball history. However, the actual amount a winner may receive is subject to various deductions, including federal withholding and income taxes, as well as potential state lottery taxes.
Details:
- The Powerball jackpot for Monday night's draw is a substantial $1.04 billion.
- Successfully matching five white numbers and one red number at the 10:59 p.m. Eastern time drawing, with odds of approximately 1 in 292 million, could secure the fourth-largest prize in Powerball history.
- Winners have two options for claiming the prize: a lump sum or annuity. Choosing the lump sum results in receiving about $478.2 million immediately, before federal withholding and income taxes.
- Federal withholding tax of 24% is applied to the lump sum, reducing the winnings to just over $360 million. Additional income taxes, potentially as high as 37%, may further decrease the final amount to as little as $301.3 million.
- Opting for the annuity means receiving the full $1.04 billion over 30 years, but federal taxes can also diminish the annual installments, especially for those in the top income-tax bracket.
- The location of the winner plays a role in the final amount, as certain states have lottery taxes. For instance, a lump-sum winner in New York, with an 8.82% lottery tax rate, may receive less than $250 million after accounting for federal withholding tax, income tax, and state lottery tax.
- In the case of multiple winners, the total earnings would be divided evenly among them.
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