Navigating the $1 billion Powerball jackpot: expert advice on taxes and winning strategies
Powerball's jackpot has reached $1 billion, but the after-tax payout for winners will vary depending on their chosen payout option and state taxes. Winners pay an automatic 24% federal withholding tax, and an additional 13% in federal taxes when filing their tax return. State income taxes range from 2.9% to 10.9%, with eight states not charging income tax on lottery winnings. The after-tax amount for the $1 billion jackpot varies by state, with lump sum payouts ranging from $269 million to $325 million, and annuity payouts ranging from $522 million to $631 million.