Joe Raedle | Getty Pictures Information | Getty Pictures
A single lottery ticket offered in Arizona is about to vary somebody’s life — after the IRS takes a chunk of the windfall, in fact.
Wednesday evening’s Powerball drawing resulted in a single ticket matching all six numbers drawn to land the $473.1 million jackpot. The quantity was increased than initially anticipated, attributable to robust ticket gross sales.
The marketed determine is not what the winner will find yourself with. Whether or not the prize is taken as an annuity of 30 funds over 29 years or as a right away, diminished money quantity, taxes find yourself consuming a large chew out of the winnings.
For this jackpot, a required federal tax withholding of 24% would scale back the $283.3 million money possibility — which most jackpot winners select — by about $68 million.
Nevertheless, the highest federal fee is 37%, so extra typically could be due at tax time. For illustration functions: If the winner had no discount in earnings — for instance, important charitable contributions from the winnings — one other 13%, or $36.8 million, could be as a result of IRS ($104.8 million in all).
There additionally shall be Arizona state taxes withheld, though the precise quantity is unclear. The winner will get 180 days to assert the prize.