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.
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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.
