Of course, over the years, we’ve all seen many lottery winners. However, you have never seen one this big! One California winner took home the entire $699.8 million Powerball jackpot – all thanks to one winning ticket!
The $699.8 Million Powerball Jackpot
One Powerball player from California will soon enter the world of the ultra-wealthy! Believe it or not, a single ticket from the Golden State managed to match all six Powerball numbers, winning the massive $699.8 million jackpot. That’s right! The win ranks as the seventh-largest amount ever won by a single lottery ticket, and the fifth-highest jackpot in Powerball history.
Of course, as you likely know, the amount advertised is much more than the winner will actually end up with. In case you’ve never looked into it, lottery winners can accept their winnings in one of two ways: a lump sum or an annuity paid over 30 years. Most winners go with the lump cash option.
Either way, taxes end up eating a good portion of the winnings. Ever wonder about the taxes on the lottery? Read on to find out!
Most of the time, the lottery winners do not have to worry about dealing with the taxes. Before the money ever reaches the winner, the IRS and state tax services take their portion. For this $699.8 million Powerball win, the IRS will likely tax the winnings at the top marginal income tax rate of 37%.
Still, there is a little good news on the tax front for the winner: California, by in large, does not tax lottery winnings! It’s a good thing they didn’t win it in New York City, which would apply both its state income tax rate of 10.9% and 3.876% local tax.
At the end of the day, if the winner goes with the lump cash option, they will take home $496 million of the $699.8 million Powerball jackpot. Hopefully, this winner took the proper steps after winning such a massive lottery…
What To Do If You Win The Lottery
Sadly, its unlikely you will ever win the lottery. After all, even after the taxes, $496 million is more than most people will ever see in their lifetime. As such, winning the lottery can often deeply affect a person. That’s why it’s so important to seek some professional guidance before picking up your lottery winnings, most financial experts say.
What should you do if you win a massive lottery? First, call a lawyer who has experience in helping lottery winners. Also, seek out a tax and financial advisor, experts say. Next, ensure you have a copy of your ticket and store the original in a safe location, like a safe deposit box or heavy safe. Finally, share the news with as few people as possible.
As of this writing, the Powerball’s jackpot has been reset to $20 million. Your chance of matching all six numbers? 1 in 292 million. Meanwhile, the Mega Millions’ jackpot sits at $45 million. You have a 1 in 302 million chance of winning the Mega Millions. While it’s best not to play, if you do, have fun!