One ticket sold in Golden State matches all six numbers withdrawn in the $ 699.8 million jackpot on Monday night. The jackpot has grown since early June, when tickets sold in Florida earned $ 286 million.
The latest jackpot is the 7th largest jackpot in American lottery history and the 5th largest jackpot in Powerball. The amount advertised is clearly more than one would get. Winners can choose to receive the prize as a lump sum or pension paid for over 30 years. In either case, the tax is levied on the majority of the profit. For this $ 699.8 million Powerball award, the cash option most people choose is $ 469 million.
Before the winner succeeds, the top 24% of the federal tax of about $ 119 million will be removed. With the highest marginal income tax rate of 37%, the IRS may pay more taxes, but that leaves a solid amount of $ 377 million.
The good news on the tax side is: California usually doesn’t tax lottery profits. This can be compared, for example, to a win in New York, where a state income tax rate of 10.9% and a local tax of 3.876% apply.
Despite the taxable part, storms are more than most people see in their lifetime. According to experts, this makes it important to get career guidance before going to the lottery headquarters. In California, you have one year to claim your prize. Also note that California does not allow winners to remain anonymous.
In general, the first call should be directed to a lawyer who is familiar with helping the lottery winners. Other professionals, such as tax advisers and financial advisers, should also be called.
Winners also need to make a copy of their ticket and keep the original in a safe place (ie a vault or bank vault). According to experts, it’s also best to share the news with as few people as possible.
The Powerball jackpot was set at $ 20 million in the Wednesday night draw. The chances of a single ticket matching all six numbers are 1 in 292 million.
Meanwhile, the Mega Millions jackpot is $ 45 million on Tuesday night’s hook. The chance of winning the jackpot of the match is 1 in 302 million.