The Powerball jackpot simply will not stop.
After nobody hit all successful numbers in Saturday evening’s drawing, the highest prize has jumped to a whopping $750 million. And whereas gamers daydream about what they’d do with such a windfall, they need to bear in mind they would not actually find yourself with the marketed quantity.
Whether or not you are taking the prize as an annuity unfold out over three a long time or as an instantaneous, diminished lump sum, 24 % of your win is withheld for federal taxes. But the highest marginal tax price of 37 % means you’d owe much more at tax time. And state taxes sometimes are due as nicely.
“The large influence on winnings is taxes,” stated licensed monetary planner Dan Routh, a wealth advisor at Exencial Wealth Advisors in Oklahoma Metropolis. “In case you win, simply notice how massive the tax invoice may be and be sure to’re able to deal with it.”