"Record-breaking Powerball Jackpot Soars to $900 Million, Tax Implications Revealed"
The Powerball jackpot has reached $900 million, making it the third-largest prize in the game's history. However, winners should be prepared for a significant reduction in the windfall due to taxes. Opting for the lump sum payout would result in an estimated pretax cash value of $465.1 million, while 30 years of annual payments are worth an estimated $900 million before taxes. Winners are advised to work with tax professionals, financial advisors, and estate planning attorneys to minimize their tax liability. The IRS requires a mandatory 24% withholding for winnings over $5,000, which reduces the prize by roughly $111.6 million. Additional federal and state taxes may also apply, depending on the winner's tax bracket and place of residence.