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Powerball jackpot rises to $975 million ahead of Wednesday draw
The prize stands at $975 million in annual payments or a $422.3 million lump sum cash option, with withholding and additional federal taxes reducing the up front take-home figure.
After 43 drawings without a jackpot winner, the Powerball prize has climbed to $975 million in annual payments or a $422.3 million lump sum cash option, according to Yahoo Finance.
The next drawing is scheduled for Wednesday, Aug. 12, and the outlet notes that Powerball’s odds of winning a jackpot are 1 in 292.2 million.
Yahoo Finance says federal tax treatment depends on whether the winner takes a lump sum or the annuity paid over 30 years. For lump sum prizes over $5,000, 24% federal withholding is taken immediately, and a large payout can also move the winner into the top federal bracket the following year.
Using the $975 million jackpot as an example, the outlet estimates that choosing the lump sum would leave about $320.9 million after the 24% withholding, with additional federal taxes due next April at a 37% marginal rate, plus state income taxes that vary by residence.