The big Powerball drawing is tonight and we can’t help but wonder how much we’d actually walk away with if we have the winning ticket.
According to Fox Business, if you choose to get the lump sum, around $80.4 million will be withheld immediately in federal taxes. Which means you’d start with around $472 million. It doesn’t end there though.
“The IRS will also likely tax the winnings at the highest federal income bracket, which now sits at 37 percent for individuals with incomes in excess of $500,000. You would owe any difference left over between that tax rate (37 percent) and the federal withholding rate (24 percent) when you file your tax return at the end of the year – or 13 percent.
Depending on where the winner lives, the jackpot could also be subject to state taxes, with amounts that range from 0 to 8.82 percent.
Prior to the implementation of state taxes, the lump sum jackpot would be worth an estimated $211 million.” – Fox Business
$211 million isn’t too shabby though!