{"id":1727086,"date":"2022-11-05T06:12:02","date_gmt":"2022-11-05T10:12:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1727086"},"modified":"2022-11-07T01:34:34","modified_gmt":"2022-11-07T06:34:34","slug":"powerball-jackpot-tops-1-6-billion-the-largest-ever","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/powerball-jackpot-tops-1-6-billion-the-largest-ever\/","title":{"rendered":"Powerball Jackpot Tops $1.6 Billion, the Largest Ever"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fpowerball-jackpot-tops-1-6-billion-the-largest-ever%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1727086&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<div class=\"TopBanner-container\" data-top-banner-placeholder=\"true\"><\/div>\n<\/div>\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\">\n<div class=\"RenderKeyPoints-keyPoints\" id=\"RegularArticle-KeyPoints-4\" data-test=\"keyPoints-1\" data-analytics=\"RegularArticle-keyPoints-4-1\">\n<div class=\"RenderKeyPoints-wrapper\">\n<div class=\"RenderKeyPoints-list\">\n<div>\n<div class=\"group\">\n<ul>\n<li>Whether the winner would choose an annuity or the reduced lump sum, taxes would take a big bite out of the prize.<\/li>\n<li>The cash option for this jackpot is $782.4 million, just under half the annuitized value.<\/li>\n<li>If the winner were to go with the lump sum, $187.8 million would be withheld for federal taxes \u2014 and that would likely be just the start.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ArticleBody-articleBody\" id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\">\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-102413174\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<div class=\"InlineImage-imageEmbedCredit\">Jonathan Alcorn | Reuters<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>If you manage to beat the odds stacked against hitting the Powerball jackpot, don&#8217;t forget you&#8217;ll have a silent partner in the win: the taxman.<\/p>\n<p>The jackpot for Saturday night&#8217;s drawing is now the largest lottery prize ever at an estimated $1.6 billion \u2014 pretax \u2014 if you were to opt to take your windfall as an annuity spread over three decades. The upfront cash option \u2014 which most jackpot winners choose \u2014 for this drawing is $782.4 million, also pretax.<\/p>\n<p>With the chance of a single ticket hitting the jackpot at about 1 in 292 million, the top prize has been rolling higher through thrice-weekly drawings since Aug. 3, when a ticket in Pennsylvania matched all six numbers drawn to score a $206.9 million jackpot.\u00a0<\/p>\n<p><strong>More from Personal Finance:<\/strong><br \/><a href=\"https:\/\/www.cnbc.com\/2022\/11\/03\/how-your-credit-score-affects-the-cost-to-finance-a-car.html\">How much a car loan could cost, based on credit score<\/a><br \/><a href=\"https:\/\/www.cnbc.com\/2022\/11\/04\/free-returns-may-be-over-as-retailers-introduce-stricter-policies.html\">Free returns at retailers may soon be a thing of the past<\/a><br \/><a href=\"https:\/\/www.cnbc.com\/2022\/11\/01\/resale-revolution-affluent-shoppers-embrace-secondhand-shopping.html\">Affluent shoppers embrace secondhand shopping<\/a><\/p>\n<p>These days, the annuity option is bigger than it previously was, relative to the cash option, due to <a href=\"https:\/\/www.cnbc.com\/2022\/11\/02\/what-the-feds-fourth-0point75-percentage-point-rate-hikes-means-for-you.html\">higher interest rates<\/a> that make it possible for the game to fund larger annuitized prizes, according to the Multi-State Lottery Association, which runs Powerball. The cash option, however, is driven by ticket sales.<\/p>\n<\/div>\n<h2 class=\"ArticleBody-subtitle\">$187.8 million would get shaved off the top<\/h2>\n<div class=\"group\">\n<p>So what would you pay in <a href=\"https:\/\/www.cnbc.com\/2022\/10\/29\/what-millionaire-tax-plans-on-california-massachusetts-ballots-mean-for-taxpayers.html\">taxes<\/a> if you were to beat the odds and land the jackpot?<\/p>\n<p>Assuming you were like most winners and <a href=\"https:\/\/www.cnbc.com\/2022\/10\/31\/powerball-jackpot-hits-1-billion-dollars-states-youd-win-the-most-money.html\">chose the cash option<\/a>, a 24% federal tax withholding would reduce the $782.4 million by $187.8 million.<\/p>\n<p>Yet more would likely be due to the IRS at tax time. The top federal income tax rate is 37% and this year applies to income above $539,900 for individual tax filers and $647,850 for married couples. <a href=\"https:\/\/www.cnbc.com\/2022\/10\/19\/irs-here-are-the-new-income-tax-brackets-for-2023.html\">Next year, the top rate<\/a> is imposed on income above $578,125 (individuals) and $693,750 (married couples).<\/p>\n<\/div>\n<div class=\"group\">\n<div id=\"RegularArticle-DataWrapperChart\" class=\"DataWrapperChart-dataWrapperContainer\"><\/div>\n<\/div>\n<div class=\"group\">\n<p>This means that unless you were able to reduce your taxable income by, say, <a href=\"https:\/\/www.cnbc.com\/2022\/09\/30\/heres-how-to-pick-the-best-charitable-giving-strategy.html\">making charitable donations<\/a>, another 13% \u2014 or about $101.7 million \u2014 would be due to the IRS. That would translate into $289.5 million going to federal coffers in all, leaving you with a cool $492.9 million.<\/p>\n<p>State taxes could also be due, depending on where the ticket was purchased and where you live. While some jurisdictions have no income tax \u2014 or do not tax lottery winnings \u2014 others impose a top tax rate of more than 10%.<\/p>\n<\/div>\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-107143354\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000270818\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/107143355-16672284601667228457-26313897499-1080pnbcnews.jpg?v=1667229919&#038;w=750&#038;h=422&#038;vtcrop=y\" alt=\"New study finds 72.5 million households pay no federal taxes\" \/><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>Nevertheless, the winner would end up with more money than most people see in a lifetime.<\/p>\n<p>Meanwhile, Mega Millions&#8217; jackpot is $119 million, or $57.7 million in cash, according to the Mega Millions website, for Friday night&#8217;s drawing. The chance of your ticket hitting the jackpot in that game is roughly 1 in 302 million.<\/p>\n<p><em>Correction: The headline on an earlier version mischaracterized the jackpot.<\/em><\/p>\n<\/div>\n<\/div>\n<div class=\"WatchLiveRightRail-inline WatchLiveRightRail-container\" id=\"RegularArticle-WatchLiveRightRail-7\" data-test=\"watchLiveRightRail-4\" data-analytics=\"RegularArticle-watchLiveRightRail-7-4\">\n<div class=\"WatchLiveRightRail-contents\"><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButton\">WATCH LIVE<img decoding=\"async\" src=\"https:\/\/static-redesign.cnbcfm.com\/dist\/4db8932b7ac3e84e3f64.svg\" class=\"WatchLiveRightRail-logo\" alt=\"logo\" \/><\/a><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButtonMobile\">WATCH IN THE APP<\/a><\/div>\n<\/div>\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-12 PageBuilder-col PageBuilder-article\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Whether the winner would choose an annuity or the reduced lump sum, taxes would take a big bite out of<\/p>\n","protected":false},"author":1,"featured_media":1727089,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[],"class_list":["post-1727086","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1727086","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1727086"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1727086\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1727089"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1727086"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1727086"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1727086"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}