As of Saturday, January 9, 2016, no one has won the Powerball, pushing potential winnings to a whopping $1.5 billion dollars. That is a lot of bank. Let’s say you won the lottery and opt for the lump sum. Sadly, you won’t get the entire $1.5 billion because of the massive tax cut of 38% on the lump sum. You’ll still be taking home $930 million dollars and that’s a hefty amount! So you win, but so does the government (no tax breaks for the lucky winner of course).
But that’s not all. You’ll also have to keep tabs on the federal tax which will eat up another 39.6% off your winnings + government withholding of yet another 25% for US citizen or resident. Those who don’t have a Social Security number will have 28% withheld or 30% for all foreigners residing in the states.
Next, in 2017, the winner will also be subjected to another 14.6% federal tax bill which drops the total earnings to about $561.7 million. Lastly, depending on where you are located, where the ticket was purchased and state and local income taxes, you can potentially shave another 15% off your lump sum. If it comes to that, your total would be around $422 million. Whoever this lucky winner is, we hope they have a great accountant in mind.
There is also the slim possibility that our winner(s) will have to share the grand prize like the way these 110 people won the lottery from a fortune cookie back in 2005. Lots to think about!
Related news: Can Poverty be Solved with Powerball Jackpot?
For the purpose of this article, let’s say your earnings will total to about $422 million after all taxes are paid off (not including future tax bills in 2018 and onward). With $422 million in your pocket, let’s take a look at what you can buy:All the Things Money Can Buy if You are the Next Powerball Winner
But since the odds of winning the powerball is 1 in 292.2 million, you may not have a million jumbo pusheen or a handful of private islands but you can still save money. You can find all of the best daily deals and exclusive coupons from top stores at DealsPlus. Your chances of winning the lottery may be slim but your chances at saving money with these deals? 100%
by Victoria Cao