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The Powerball jackpot has soared to an impressive $593 million, marking it as the third-largest lottery prize of the year. This comes after Monday night’s draw failed to produce a ticket that matched all six winning numbers. However, the eventual winner will see a significantly reduced sum due to taxes and deductions.
The numbers drawn on Monday were 7, 33, 50, 57, 66, with the Red Powerball number being 23.
For any lucky ticket holder in the upcoming draw, there are two payout options: receiving the $593 million in 30 annual installments or opting for a lump-sum payment of $277.6 million. Historically, most winners lean towards the lump-sum option.
Choosing the cash payout brings the total down to approximately $211 million after a mandatory 24% federal withholding.
The winner’s final amount could be further reduced by a federal marginal tax rate that might climb as high as 37%, depending on their overall taxable income, which would trim the winnings down to about $175 million.
If the winner selects the installment plan, their yearly payout of about $19.8 million would be reduced to $12.5 million due to the 37% federal marginal tax rate.
If the installments route is chosen, the winner’s annual payments of around $19.8 million would fall to $12.5 million after the 37% federal marginal rate is applied.
Depending on their home state, the winner could face additional taxes, as some states, such as New York, tax lottery winnings at 10.9%, while others, such as Texas, Florida, and California, don’t.
What To Watch For
The next Powerball jackpot draw is set to take place on Wednesday night.
